Government has extended the Export Obligation period for products covered under mandatory Quality Control Orders (QCOs) notified by Department of Chemicals and Petrochemicals (DCPC) from six months to 18 months, a move widely welcomed by the chemical industry. Announced through DGFT Notification No. 28 on May 28, 2025, the decision provides exporters additional time to fulfill their obligations under the Advance Authorization Scheme, offering greater flexibility and relief.
This extension follows similar measures in other sectors, such as textiles, where exporters have also been granted an 18-month period. The move is expected to simplify trade processes, ensure steady availability of raw materials, and strengthen the global competitiveness of Indian chemical products.
Advance Authorization Scheme allows importers to bring in raw materials duty-free for export production without meeting QCO requirements for those inputs. This ensures uninterrupted operations for exporters, with a significant portion of authorizations benefiting the chemical and petrochemical sector. The policy adjustment is likely to ease working capital pressures, improve raw material access, and boost the international competitiveness of Indian products.
Chemical and petrochemical industry is a key contributor to India’s economy, accounting for USD 46.4 billion in exports in 2024-25, or 10.6% of the country’s total export value. By extending the Export Obligation period, government aims to reinforce the sector’s global position while providing exporters much-needed operational flexibility.
Industry experts have welcomed the decision as forward-looking. The move is expected to ease input cost pressures, improve supply chain stability, and further enhance India’s reputation as a reliable player in the international chemical market.
