New Delhi, Sep 2 (SocialNews.XYZ) In a major relief to the chemical industry, the government has extended the export obligation period under "advance authorisation" for products falling under mandatory Quality Control Orders (QCOs) from 6 months to 18 months, according to an official statement issued on Tuesday.
The order. issued by the Directorate General of Foreign Trade (DGFT) at the behest of Department of Chemicals and Petrochemicals, follows a similar adjustment for QCOs notified by other ministries, such as Textiles, where the period was also extended to 18 months.
This measure extends essential support and flexibility to exporters dealing with chemicals and petrochemicals across India. The move is poised to simplify trade processes and elevate the global market edge of Indian goods, the statement explained.
The step has been taken a time when the Donald Trump administration has hiked tariffs on all imports coming into the US, triggering economic uncertainty in the global market. India has been singled out for among the highest tariffs at a penal rate of 50 per cent, ostensibly for buying Russian oil.
Through the Advance Authorisation Scheme, importers can bring in duty-free raw materials for export production without adhering to QCOs for those inputs, ensuring a steady flow of export operations. A significant number of these authorizations cater to the chemical sector, emphasising the value of this policy shift.
The government remains committed to strengthening the chemicals and petrochemicals landscape through targeted strategies, acknowledging its pivotal role in economic growth. In 2024-25, the sector's export contributions reached an impressive level of $46.4 billion which is 10.6 per cent of the total export value of the country, reinforcing its critical status, the statement said.
This initiative aims to ease financial pressures from input costs, guarantee raw material availability, and fortify the competitive position of Indian chemical products worldwide. The Department of Chemicals and Petrochemicals and DGFT’s actions demonstrate a forward-thinking and strategic vision, the statement added.
Source: IANS
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