Relief to textile exporters: Centre extends export obligation period

New Delhi, Aug 30 (IANS) The industry, on Saturday, welcomed the important step taken by the Directorate General of Foreign Trade (DGFT) extending the Export Obligation (EO) period under advance authorisation for products subjected to mandatory Quality Control Orders (QCOs) issued by the Department of Chemicals and Petrochemicals (DCPC).

In respect of QCOs notified by the Ministry of Textiles, the EO period under advance authorisation had already been extended from six to 18 months.

Together, these measures provide timely and much-needed relief to exporters of man-made fibre (MMF) textiles and technical textiles, according to an official statement.

These measures will improve ease of doing business as well as improve competitiveness of Indian products.

Under the Advance Authorisation Scheme, duty-free imports of inputs are permitted for use in physical exports, without the mandatory requirement of compliance with QCOs for such imports.

This flexibility ensures continued availability of critical raw materials for the textile industry and facilitates uninterrupted export performance, the statement said.

Notably, around 18 per cent of all advance authorisations are issued for the textile sector, underlining the significance of this facilitation measure.

The import duty on cotton (Harmonized System code 5201) has been exempted till December 31, 2025, which will additionally strengthen raw material availability for the sector.

The government through Production Linked Incentive, National Technical Textiles Mission extend, and interventions as above continues to support the textiles and technical textiles, which together constitute a key growth segment for textile production.

India's exports under the entire MMF value chain were valued at $8.46 billion in 2024-25, including $401 million of MMF fibre exports.

These decisions will help ease input cost pressures, ensure raw material security, and support the global competitiveness of Indian textile exports.

The measures and interventions by the DCPC and DGFT are proactive and forward-looking.

—IANS

na/khz