Ministry of Textiles Approves DGFT’s Steps on Extension of EO Period For QCO-Regulated Imports
The Ministry of Textiles recently shared a press release on August 30, 2025, regarding the extension of the EO period under Advance Authorisation. The Textiles Industry welcomed the significant steps taken by the Directorate General of Foreign Trade (DGFT) for 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 Export Obligation time period has been increased from 6 months to 18 months.
Under the Advance Authorisation Scheme, duty-free imports are allowed for use in physical exports with the compulsory requirement of compliance with QCOs for such imports. This elasticity ensures the resumed availability of critical raw materials for the textile industry and facilitates undisturbed export performance. Especially, around 18% of all Advance Authorisations are passed for the textile sector, highlighting the importance of this facilitation measure.
The EO period under Advance Authorisation had already been extended for Quality Control Orders notified by the Ministry of Textiles. These actions are beneficial for the exporters who export man-made fibre (MMF) textiles and technical textiles. It will boost the business efficiency and the competitiveness of Indian products.
Further, the import duty on cotton (HS 5201) has been exempted till December 31, 2025, which will also strengthen raw material availability for the sector.
The Government of India, through PLI and NTTM, extends interventions as above and continues to support the textiles and technical textiles, which together make up an important growth segment for textile production. India’s exports under the MMF value chain were valued at USD 8.46 billion in 2024-2,5, including USD 401 million of MMF fibre exports.
This move will help simplify input cost pressures and ensure the security of raw material, and support the global competitiveness of Indian textile exports. The steps taken by DCPC and DGFT show that they are proactive and taking action at the right time to support the industry.
To know the complete details, refer to the official press release