Government Extends Relief to Chemical Exporters

• 03 Sep 2025
• 285 Views

The Directorate General of Foreign Trade (DGFT) has made a key decision to offer relief to the exporters in the chemical industry. At the behest of the Department of Chemicals and Petrochemicals (DCPC), DGFT issued Notification No. 28, dated 28.05.2025, extending the export obligation period under advance authorization for products that fall under mandatory quality control orders (QCOs) notified by DCPC. 

The export obligation timeframe has now been extended from 6 months to 18 months. This extension will offer a substantial buffer to the chemical industry. The decision comes after a similar adjustment was notified for QCOs by other ministries, like textiles, where the period was also extended to 18 months. 

The move extends much-needed support and flexibility to the exporters who deal with chemicals and petrochemicals in India. The measure intends to make trade processes simpler for export businesses and raise the Indian products’ global market edge. 

Advance Authorization Scheme allows the importers to bring in duty-free raw materials for export production without adhering to quality control orders for those inputs. This ensures a steady flow of export operations. A substantial number of these authorizations cater to the chemical industry. Therefore, this policy shift is quite valuable.

The chemical industry plays an indispensable role in the economic growth of the country. Therefore, the Government of India remains dedicated to strengthening this industry. The industry’s export contribution was USD 46.4 billion in 2024-25, amounting to 10.6% of the country’s total export value. 

The initiative by the government aims to ease the financial burden from input costs, guarantee availability of raw materials and reinforce the Indian chemical products’ competitive position across the globe. The actions taken by the Directorate General of Foreign Trade and the Department of Chemicals and Petrochemicals showcase forward-thinking and strategic vision.

Source: Press Information Bureau (PIB)