Relief for Textile Exporters: Centre Extends Export Obligation Period

New Delhi — Textile exporters have welcomed the Directorate General of Foreign Trade’s (DGFT) move to extend the Export Obligation (EO) period under advance authorisation for products covered by mandatory Quality Control Orders (QCOs) issued by the Department of Chemicals and Petrochemicals (DCPC).

For QCOs notified by the Ministry of Textiles, the EO period had earlier been extended from six months to 18 months. Together, these relaxations provide much-needed relief to exporters of man-made fibre (MMF) and technical textiles, the government said in a statement.

The measures are expected to enhance ease of doing business and improve the global competitiveness of Indian products. Under the Advance Authorisation Scheme, duty-free imports of inputs are allowed for physical exports, exempting them from QCO compliance. This ensures the uninterrupted availability of critical raw materials and helps sustain export performance.

Nearly 18% of all advance authorisations are issued for the textile sector, underscoring the importance of this facilitation measure. Additionally, the government has exempted import duty on raw cotton (HS code 5201) until December 31, 2025, further supporting raw material security.

India’s MMF value chain exports were worth $8.46 billion in 2024-25, including $401 million from MMF fibre exports. With initiatives like the Production Linked Incentive (PLI) scheme, the National Technical Textiles Mission, and these latest interventions, the Centre aims to strengthen one of the fastest-growing segments of textile production.

The DCPC and DGFT have termed these steps proactive and forward-looking, designed to reduce input cost pressures, ensure raw material availability, and support India’s global competitiveness in textiles.

With inputs from IANS