Textile exporters receive extension for DGFT period, cotton import duty forgone until December 2025
Published on August 30, 2025
The Indian textiles industry is set to reap significant benefits from a recent policy decision by the competent regulatory authority. The decision, announced on August 28, 2023, extends the mandatory export period for goods under the requirement of advanced authorization for products subject to quality control orders from six months to 18 months.
The Directorate General of Foreign Trade (DGFT) has extended the Export Obligation (EO) period for products covered by Quality Control Orders (QCOs) in the textiles industry. This relief measure, intended to boost the export competitiveness of the industry, has been welcomed by the textiles sector, which accounts for nearly 18% of all advance authorisations issued.
The extended EO period is specifically for products covered by mandatory QCOs. The relaxation under Advance Authorisation allows duty-free import of raw materials for physical exports, with exemption from QCO compliance. This flexibility in sourcing and production cycles is expected to provide a significant boost to the industry.
The government's move comes as part of a broader strategy to strengthen raw material availability and ease input cost pressures. In addition to exempting import duty on cotton till December 31, 2025, the government has also announced the Production Linked Incentive (PLI) and National Technical Textiles Mission (NTTM) as schemes expected to support the textiles industry.
The extension of the EO period is expected to bolster the global competitiveness of Indian textiles and technical textiles. In FY25, India's man-made fibre value chain exports were valued at $8.46 billion, including $401 million from fibre alone. The latest policy measures, including the extension of the EO period, are expected to further boost these figures.
The Advance Authorisation Scheme, which facilitates exports in the textiles industry, is a key beneficiary of this measure. The Centre expects the extension to ease compliance timelines and improve export competitiveness for man-made fibre (MMF) and technical textiles.
The textile sector is poised to benefit significantly from these policy decisions, marking a promising future for the industry in India.
Read also:
- visionary women of WearCheck spearheading technological advancements and catalyzing transformations
- Recognition of Exceptional Patient Care: Top Staff Honored by Medical Center Board
- A continuous command instructing an entity to halts all actions, repeated numerous times.
- Oxidative Stress in Sperm Abnormalities: Impact of Reactive Oxygen Species (ROS) on Sperm Harm
