**Policy Summary: Extension of Export Obligation Period for Textile Exporters under Advance Authorisation**
**Date:** August 30, 2025
**Issuing Agency:** Directorate General of Foreign Trade (DGFT), Ministry of Textiles
**Overview:** This policy provides relief to textile exporters by extending the Export Obligation (EO) period under the Advance Authorisation scheme. Notification No. 28, dated August 28, 2025, increases the EO period from 6 months to 18 months for products subject to mandatory Quality Control Orders (QCOs) issued by the Department of Chemicals and Petrochemicals (DCPC). This extension aligns with previous measures already implemented for QCOs notified by the Ministry of Textiles.
**Key Provisions:**
* **Extension of EO Period:** The EO period under Advance Authorisation is extended from 6 months to 18 months for products subject to QCOs issued by DCPC.
* **Advance Authorisation Scheme:** Duty-free imports of inputs are permitted for use in physical exports, without mandatory compliance with QCOs for such imports.
* **Import Duty Exemption:** The import duty on cotton (HS 5201) remains exempted until December 31, 2025.
**Rationale and Impact:**
* The extension aims to improve the ease of doing business and enhance the competitiveness of Indian textile products.
* The Advance Authorisation scheme ensures the continued availability of critical raw materials for the textile industry and supports uninterrupted export performance. Approximately 18% of all Advance Authorisations are issued for the textile sector.
* The measures are intended to ease input cost pressures, ensure raw material security, and support the global competitiveness of Indian textile exports.
* India's exports under the manmade fiber (MMF) value chain were valued at USD 8.46 billion in 2024-25, including USD 401 million of MMF fiber exports.
**Supporting Initiatives:**
* The Government of India continues to support the textiles and technical textiles sectors through initiatives such as Production Linked Incentive (PLI) schemes and the National Technical Textiles Mission (NTTM).
**Contact:** PIB Delhi (Release ID: 2162261)
Key Entities Referenced
Ministry of Textiles: The Indian governmental ministry responsible for the formulation of policy and regulation of the textile industry.
Directorate General of Foreign Trade: An agency of the Indian government responsible for implementing foreign trade policy and promoting exports.
Advance Authorisation Scheme: A scheme that allows duty-free import of inputs for use in physical exports.
Department of Chemicals Petrochemicals: An Indian government department that issues Quality Control Orders relevant to the textile industry.
Quality Control Orders: Mandatory quality standards issued by the Department of Chemicals Petrochemicals for certain products.
Manmade Fibre: Raw material used in textile industry.
PLI: Production Linked Incentive scheme to support the textile industry.
New Textiles Technology Mission: Initiative to promote research and development in the textile sector.
Ministry of Textiles
Relief to Textile Exporters through Extension of
Export Obligation Period under Advance
Authorisation
Posted On: 30 AUG 2025 5:05PM by PIB Delhi
The Textiles Industry welcomes the important step taken by the Directorate General of Foreign Trade
(DGFT) vide Notification No. 28 dated 28.08.2025, extending the Export Obligation (EO) period under
Advance Authorisation for products subjected to mandatory Quality Control Orders (QCOs) issued by the
Department of Chemicals & Petrochemicals (DCPC). The EO period has been enhanced from 6 months to 18
months.
In respect of QCOs notified by the Ministry of Textiles, the EO period under Advance Authorisation had
already been extended from 6 months to 18 months. Together, these measures provide timely and much-
needed relief to exporters of man-made fibre (MMF) textiles and technical textiles. 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. Notably, around 18% of all Advance Authorisations are issued for the textile sector,
underlining the significance of this facilitation measure.
Further, the import duty on cotton ( HS 5201) has been exempted till 31st December, 2025, which will
additionally strengthen raw material availability for the sector.
The Government of India through PLI, NTTM 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 USD 8.46 billion in 2024-25, including USD 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 Department of Chemicals &
Petrochemicals (DCPC) and DGFT are proactive and forward-looking.
******
MAM
(Release ID: 2162261)