The Indian government has extended the export obligation period for chemicals under the advance authorisation scheme from 6 to 18 months. This decision is intended to provide significant relief to exporters of man-made fibre (MMF) textiles and technical textiles. The government’s move aims to improve the ease of doing business and enhance the global competitiveness of Indian products, especially in light of the new 50% tariffs imposed by the US on Indian goods.
Under the Advance Authorisation Scheme, exporters are allowed to import inputs duty-free for use in their physical exports. The extension of this period will help these businesses manage their operations more effectively. The Ministry of Textiles had already extended the export obligation period for its quality control orders from 6 to 18 months, and this new measure aligns with that effort to provide timely and much-needed support to the industry.