The Reserve Bank of India (RBI) has relaxed norms for Indian exporters using Bharat Mart, a UAE-based marketplace, to facilitate easier exports and repatriation of funds. Bharat Mart is a multimodal logistics network-based marketplace that provides Indian traders, exporters, and manufacturers access to global markets. The relaxation of norms aims to promote Indian exports and enhance the country’s trade competitiveness.
According to the RBI circular, banks are now allowed to permit exporters to realize and repatriate the full export value of goods sold through Bharat Mart within nine months from the date of sale. This extended time frame will enable exporters to manage their working capital requirements more effectively and reduce the risk of non-repatriation of export proceeds.
Additionally, the RBI has eased the process for Indian exporters to set up and operate warehouses in Bharat Mart. Exporters can now open or hire a warehouse in Bharat Mart without any pre-conditions, provided they have a valid Importer Exporter Code (IEC). Banks have been instructed to verify the reasonableness of the exporter’s proposal before allowing the setup of the warehouse.
The relaxed norms also apply to remittances made by Indian exporters for initial and recurring expenses related to setting up and operating their offices in Bharat Mart. This will enable exporters to establish a presence in the UAE-based marketplace and cater to the demands of global customers more effectively.
The RBI’s move is expected to boost Indian exports and enhance the country’s trade competitiveness in the global market. By facilitating easier access to international markets and providing a more favorable business environment, the government aims to increase export volumes and contribute to the country’s economic growth. The relaxation of norms for Bharat Mart is a significant step towards achieving this goal and is expected to benefit Indian exporters, manufacturers, and traders.