The Treasurer’s Guide to Trade Finance

India

oriented entity if they are held in a foreign

currency account based in India.

ƒ The RBI, ADs or the EXIM Bank can allow

exporters to open and maintain foreign

currency accounts in the currency of their

choice, with inter-project transferability of

funds, in any currency or country.

ƒ All invisible transaction and current transfer

proceeds must be repatriated.

ƒ Commercial credits with maturities of six

months are permitted from residents to non-

residents, but approval is required for longer

maturities.

India imports exports

Bank accounts

ƒ Resident companies cannot hold local

currency (INR) bank accounts outside India.

ƒ Approval is usually needed from the RBI for

resident companies wanting to open foreign

currency accounts, within or outside India.

ƒ Foreign currency accounts are available

domestically to residents holding an account

with an AD. These accounts are non-interest

bearing and can be used for funds resulting

from the export of goods and services, legal

transactions with non-residents in India and

the remitting of balances from travel abroad.

ƒ Residents are permitted to open and hold

foreign currency bank accounts outside

India for current and capital account

transactions so long as they remit not more

than USD 200,000 or its equivalent in foreign

currency each financial year. Remittances

over USD 200,000 or for other purposes

require RBI approval.

ƒ Non-resident companies can hold local

currency bank accounts and foreign currency

bank accounts in India.

Trade information

Key trading partners

Imports by origin

China 12.0%

EU 11.9%

UAE 7.7%

Switzerland 6.8%

Saudi Arabia 6.1%

Other 55.5%

Source: WTO, September 2012

Exports by destination

EU 18.1%

UAE 12.4%

USA 10.9%

China 5.5%

Singapore 5.2%

Other 47.9%

Principal exports

Petroleum products, gems and jewellery,

machinery, iron and steel, chemicals, vehicles

and apparel.

Documentation

Imports

ƒ A certificate of origin, cargo release order,

bill of entry, technical standard certificate,

commercial invoice, foreign exchange

control form, product manual, terminal

handling receipts, inspection reports and a

packing list.