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RBI Trade Relief May Ease Liquidity Stress for MEC Exporters Ind-Ra

November 28, 2025

RBI’s Export Relief to Ease Liquidity Pressure on MECs, But Risks Remain: Ind-Ra

The Reserve Bank of India’s recent trade-relief package is expected to provide short-term liquidity support for mid and emerging corporate (MEC) exporters facing revenue losses due to global trade disruptions. According to India Ratings & Research (Ind-Ra) , although the deferment of loan repayments is likely to significantly reduce immediate financial stress, the long-term solvency of these firms hinges on restoring export volumes, recovering lost markets and managing debt maturities scheduled for FY27.

Relief Impact Varies Across Sectors

Ind-Ra noted that RBI’s repayment moratorium meaningfully cushions vulnerable export-linked earnings, especially for sub-investment grade entities. Sectoral analysis indicates that the incentives could compensate for over 50% of at-risk EBITDA in textiles , while industrial products may see coverage of only around 30% .

The agency estimates the total benefit to eligible exporters at nearly ₹420 crore via deferred liabilities, against an exposed export EBITDA of approximately ₹750 crore . The remaining gap may require stop-gap solutions such as promoter funding, drawing down on working capital, or pausing planned capital expenditure.

Critical Need for Export Recovery by FY27

Sub-investment grade MECs—especially in textiles, industrial products, gems & jewellery, auto parts and processed foods—remain the most vulnerable due to tariff exposure in the U.S. market. While RBI measures are expected to improve liquidity through FY26, Ind-Ra warns that accumulated repayment obligations will increase beginning H1FY27 , making export recovery vital for long-term financial stability.

In addition to the moratorium, RBI has introduced liquidity-enhancing provisions including recalculated drawing power, extended credit periods up to 450 days for export finance and revised working capital margins. The effectiveness of these benefits will depend heavily on efficient rollout by banks and NBFCs.

Exam Oriented Facts

  • Relief package estimated benefit: ₹420 crore vs. ₹750 crore vulnerable EBITDA

  • Credit period for export finance extended to 450 days till March 2026

  • Textile sector sees highest relief coverage (50%+), industrial products ~30%

  • Debt maturity pressure expected to intensify in H1 FY27

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