Textile exporters get relief: DGFT extends EO period, cotton duty waived till Dec 2025

NEW DELHI: The textiles industry has welcomed a major relief measure as the Directorate General of Foreign Trade (DGFT) extended the Export Obligation (EO) period under Advance Authorisation for products covered by mandatory Quality Control Orders (QCOs) from six months to 18 months.

The relaxation, notified on August 28, follows a similar extension already granted by the Ministry of Textiles for its QCO-regulated items.

“Together, these steps are expected to ease compliance timelines and improve export competitiveness for man-made fibre (MMF) and technical textiles,” the Centre said in a statement.

Under the Advance Authorisation Scheme, duty-free import of raw materials is allowed for physical exports, with exemption from QCO compliance.

Nearly 18% of all advance authorisations are issued to the textile sector, underlining the importance of this facilitation

Industry representatives say the extended export obligation period will provide flexibility in sourcing and production cycles, while supporting uninterrupted export commitments.

In a parallel move, the government has also exempted import duty on cotton till December 31, 2025, strengthening raw material availability and easing input cost pressures.

India’s man-made fibre value chain exports were valued at $8.46 billion in FY25, including $401 million from fibre alone.

The latest policy measures, combined with schemes such as the Production Linked Incentive (PLI) and National Technical Textiles Mission (NTTM), are expected to bolster the global competitiveness of Indian textiles and technical textiles.