The chemical industry has welcomed a significant relief measure from the Government of India, which has extended the export obligation period under Advance Authorization for Quality Control Order (QCO) products notified by the Department of Chemicals and Petrochemicals (DCPC).
In a notification issued by the Directorate General of Foreign Trade (DGFT), the export obligation timeframe has been extended from the existing six months to 18 months. The move is expected to ease compliance pressures and give exporters greater operational flexibility.
The measure aligns with similar extensions earlier granted to other sectors such as textiles, and comes at a time when Indian chemical exporters are striving to maintain a competitive edge in global markets. The Advance Authorization Scheme allows duty-free import of raw materials for export production, ensuring uninterrupted supply chains and cost efficiency for the industry.
The chemical and petrochemical sector plays a critical role in India’s trade landscape, contributing USD 46.4 billion in exports in FY 2024–25 — about 10.6% of the country’s total export value. With this extension, exporters now have a larger window to meet their obligations, which is expected to enhance liquidity, reduce input cost pressures, and strengthen India’s positioning as a reliable supplier.
Government officials emphasized that the decision reflects a long-term vision to simplify trade processes and foster growth in a sector that is central to India’s economic development.
