India Extends Export Obligation to Boost Textile Sector

The Indian government has announced an extension of the export obligation period from six to 18 months for chemicals under the advance authorisation scheme, which is anticipated to bring significant relief to textile exporters dealing with man-made fibres and technical textiles.

This extension comes in the context of a challenging market, as the United States has imposed tariffs as high as 50% on Indian goods entering its marketplace. The Textile Ministry has emphasized that this measure is crucial for maintaining the competitiveness of Indian products on the global stage.

The Advance Authorisation Scheme allows duty-free import of inputs for exports, bypassing quality control mandates. This ensures the availability of essential materials and supports uninterrupted export operations, with almost 18% of authorisations benefiting the textile sector.

(With inputs from agencies.)