New Delhi — In a major relief to the textile industry, the Centre has extended the Export Obligation (EO) period under the advance authorisation scheme for products covered by mandatory Quality Control Orders (QCOs).
Earlier, the Ministry of Textiles had already extended the EO period from six months to 18 months for items under its notified QCOs. With the Directorate General of Foreign Trade (DGFT) now extending the relaxation for QCOs issued by the Department of Chemicals and Petrochemicals (DCPC), exporters of man-made fibre (MMF) and technical textiles are expected to benefit significantly.
The move will ensure uninterrupted access to essential raw materials, ease compliance burdens, and strengthen the competitiveness of Indian textile products in global markets. Nearly 18% of all advance authorisations are issued for the textile sector, underlining the importance of this decision.
In addition, the government has exempted import duty on raw cotton (HS code 5201) until December 31, 2025, further supporting the sector’s raw material needs. India’s exports across the MMF value chain stood at $8.46 billion in 2024-25, including $401 million from MMF fibre exports.
According to the government, these steps—alongside initiatives like the Production Linked Incentive (PLI) scheme and the National Technical Textiles Mission—will help reduce input costs, secure raw material supply, and boost India’s textile exports on the global stage.
With inputs from IANS