DGFT Amends FTP 2023 to Broaden INR-Denominated Export Contracts and Export Benefits

The Directorate General of Foreign Trade (DGFT) has amended Paras 2.52 and 2.53 of the Foreign Trade Policy (FTP) 2023 through DGFT Notification No. 30/2026-27 dated 20 August 2026, titled "Amendment in Para 2.52 and 2.53 of the Foreign Trade Policy (FTP) 2023". The official list of DoC/DGFT notifications records the notification under that number and date. The change deals with two linked questions for exporters: in which currency an export contract may be denominated and realised, and whether export proceeds received in Indian Rupees (INR) count for FTP benefits and export obligations.

According to DGFT, the amendment is meant to align the FTP provisions on denomination of export contracts, and on eligibility for FTP benefits where exports are realised in INR, with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.

What the FTP said before the amendment

The text of Chapter 2 of FTP 2023 published by DGFT shows how narrow the earlier position was:

• Para 2.52: all export contracts and invoices could be denominated either in freely convertible currency or in Indian Rupees, but export proceeds had to be realised in freely convertible currency. Realisation in rupees was allowed as an exception through the Special Vostro account route of non-resident banks, subject to conditions.
• Para 2.53: export proceeds realised in INR were put on par with freely convertible currency for FTP benefits, incentives and fulfilment of export obligations only in specific cases, namely exports to Iran (subject to Para 2.19 of the FTP) and realisations under the Special Vostro mechanism.

In practice, this meant an exporter could invoice in rupees but, outside the listed routes, could not be sure that rupee receipts would count for scheme benefits or for discharging an export obligation.

What changes now

After Notification No. 30/2026-27, export proceeds realised in INR through the banking routes permitted under the FEMA framework are treated at par with proceeds realised in foreign currency. Such INR realisations now qualify for FTP benefits and incentives and count towards the fulfilment of export obligations, instead of being limited to the earlier specific exceptions.

The FEMA route matters. The FTP has now been brought in line with that framework. As trade policy expert TNC Rajagopalan put it in Business Standard, the notification "aligns FTP with the existing FEMA/RBI framework", and is not a fresh liberalisation of INR settlement itself.

Who is affected

The change is relevant to exporters that invoice or receive payment in rupees, particularly those holding Advance Authorisations or EPCG authorisations with export obligations to discharge, and those claiming FTP incentives. It is equally relevant for the CAs, treasury teams and customs brokers who prepare export-obligation discharge applications and reconcile realisation records with bank documents.

What exporters should do now

• Check that the bank account into which INR proceeds are credited is one permitted under the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 and applicable RBI directions. The FTP benefit depends on the FEMA route being followed.
• Review contract and invoice templates where rupee settlement is planned, so that the currency of the contract, the invoice and the realisation record match.
• Map INR realisations to shipping bills and to the export obligation records of each authorisation before filing for discharge or claiming incentives.
• For exports to Iran, continue to comply with Para 2.19 of the FTP.

Updated on 28 September 2026: added the DGFT notification reference and the earlier text of Paras 2.52 and 2.53, and limited the report to facts confirmed by the official notification listing, the FTP text and two independent reports.