SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Chemicals & Fertilizers
On 28 May 2025, following recommendations from the Department of Chemicals and Petrochemicals, the DGFT extended the Export Obligation period under the Advance Authorization Scheme for products subject to Quality Control Orders (QCOs) from six months to 18 months. This provides critical flexibility to chemical and petrochemical exporters, allowing them more time to fulfill export commitments using duty-free inputs. This extension is aligned with similar adjustments granted for QCOs under other ministries, such as Textiles. The move is expected to ease financial pressure on input costs, ensure continuity in supply chains, and enhance the competitive positioning of Indian chemical exports. In fiscal year 2024β25, chemicals and petrochemicals accounted for USD 46.4 billion, or 10.6%, of Indiaβs total exports.
Relevant question for policy stakeholders: How can export-linked incentive schemes like the extended export obligation buffer, be strategically designed to balance regulatory compliance, firm-level liquidity, and long-term export competitiveness?
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https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2162989