<p data-path-to-node="5">Calling for major regulatory easing to boost India’s global competitiveness, leading trade economists and EXIM industry experts have urged the Reserve Bank of India (RBI) to modernize foreign exchange compliance and trust Indian traders, drawing parallels to the landmark 1991 economic liberalization.</p><p data-path-to-node="6">Speaking at a trade symposium organized by economic policy bodies, experts highlighted that while the 1991 reforms successfully deregulated domestic markets and built confidence in private enterprise, cross-border trade transactions remain constrained by rigid banking documentation requirements, strict forex realization timelines, and heavy procedural overheads enforced under the Foreign Exchange Management Act (FEMA).</p><h3 data-path-to-node="8"><b data-path-to-node="8" data-index-in-node="0">Easing Compliance, Modernizing Forex Norms, and Boosting Trade Competitiveness</b></h3><p data-path-to-node="9">Industry leaders outlined key structural changes required to streamline cross-border trade operations and support national export targets:</p><ul data-path-to-node="10"><li><p data-path-to-node="10,0,0"><b data-path-to-node="10,0,0" data-index-in-node="0">Shifting from Control to Facilitation:</b> Experts argued that current regulatory frameworks still treat trade transactions with excessive suspicion, calling on the central bank to transition from a control-based regulatory regime to a trust-based compliance model.</p></li><li><p data-path-to-node="10,1,0"><b data-path-to-node="10,1,0" data-index-in-node="0">Easing Realization Timelines:</b> The forum emphasized the need for greater flexibility in export proceeds realization and payment write-offs, allowing exporters to adapt to unpredictable global economic conditions and geopolitical trade disruptions without facing penal procedures.</p></li><li><p data-path-to-node="10,2,0"><b data-path-to-node="10,2,0" data-index-in-node="0">Simplifying Trade Documentation:</b> Streamlining bank verification procedures for import payments and export documentation is crucial to reducing administrative overheads and improving cash flow management for small and medium-sized exporters (MSMEs).</p></li><li><p data-path-to-node="10,3,0"><b data-path-to-node="10,3,0" data-index-in-node="0">Supporting Global Integration:</b> Aligning central bank trade guidelines with modern, digital global supply chain practices will be essential for India to achieve its target of $2 trillion in combined exports by 2030.</p></li></ul>