New Delhi, Sep 2: The chemical industry has received a major relief as the Directorate General of Foreign Trade (DGFT) extended the Export Obligation period under the Advance Authorization scheme for products covered by mandatory Quality Control Orders (QCOs).
The notification, issued on May 28 at the request of the Department of Chemicals and Petrochemicals (DCPC), increases the obligation timeframe from six months to 18 months.
The move is expected to ease compliance pressure and give exporters greater flexibility, especially at a time when Indian goods are facing new tariff barriers in the United States under President Donald Trump.
Officials said the extension would help safeguard the competitiveness of India’s chemical and petrochemical exports, which reached USD 46.4 billion in 2024-25, accounting for over 10% of total exports. By ensuring duty-free raw material imports and longer timeframes for fulfilling export obligations, the government aims to cushion the sector from rising input costs and external trade shocks.
The step aligns with similar relief provided earlier for QCOs under the Ministry of Textiles and is seen as part of India’s wider effort to maintain its global market edge amid tightening protectionist measures abroad.
