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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2014 Can a company Export goods in INR instead of USD?
IF it chooses to do so what are the merits & Demerits?
And which is more preferable?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 December 2014 Here only advantage is you are transferring the currency exposure to your buyer. because conversion loss/gain will be taken care by buyer.

Disadvantages

1. Your exports will not earn the foreign currency in India

2. Incase any benefits & subsidies on your exports cannot be claimed since the realisation received in INR

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2014 But is not that exporting in INR increases demand of INR in overseas market??

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 December 2014 it may increase but economically bringing forex in to India will have more beneficial