Daijiworld Media Network - New Delhi
New Delhi, Aug 30: In a significant move to support textile exports, the Directorate General of Foreign Trade (DGFT) has extended the Export Obligation (EO) period under the Advance Authorisation Scheme for products covered by Quality Control Orders (QCOs) issued by the Department of Chemicals and Petrochemicals (DCPC).
Industry bodies have welcomed the decision, calling it a timely relief for exporters of man-made fibre (MMF) textiles and technical textiles, sectors increasingly subject to mandatory quality norms.
For textile-specific QCOs notified by the Ministry of Textiles, the EO period had already been extended from 6 to 18 months. With Saturday's announcement, similar relief now applies to chemical and petrochemical products under QCOs, aligning policy across the value chain.
“These measures improve the ease of doing business and enhance the global competitiveness of Indian products,” the Ministry said in an official statement.
Key Highlights:
• Advance Authorisation Scheme allows duty-free import of raw materials used for export products.
• Products under QCOs are now exempt from compliance requirements for imports under this scheme.
• Around 18% of all advance authorisations go to the textile sector, underscoring the policy’s importance.
• Import duty exemption on cotton (HS code 5201) extended till December 31, 2025, aiding raw material access.
• The move complements ongoing initiatives like the PLI Scheme and the National Technical Textiles Mission.
India’s exports from the MMF value chain touched $8.46 billion in FY 2024-25, with $401 million coming from MMF fibre exports alone.
Industry stakeholders believe the step will reduce input costs, ensure raw material security, and promote uninterrupted export growth, especially amid rising global competition and regulatory requirements.
The coordinated approach by DCPC and DGFT is being seen as proactive and industry-friendly, particularly in light of the global push for higher quality compliance in exports.