Govt grants relaxation to fulfil export obligation

New Delhi: In a major relief to exporters, the government granted certain relaxations to help them fulfil their obligations amid the "prevailing geopolitical developments affecting international shipping routes and global supply chains", the Directorate General of Foreign Trade said on Saturday.

The step assumes significance in light of the challenges faced by exporters in shipping goods to West Asia due to the ongoing conflict in the region.

The relaxation is in terms of automatic extension of authorisations under Advance and Export Promotion Capital Goods (EPCG) schemes that were expiring between March 1 and May 31, 2026. This extension is without payment of composition fee, the DGFT said in a public notice.


"This step reflects the government's continued commitment to supporting exporters and ensuring that temporary global disruptions do not adversely impact India's export performance or compliance obligations under export promotion schemes," the commerce and industry ministry said in a statement. Under the EPCG scheme, domestic firms are allowed duty-free imports of machines provided they meet certain export obligations. The latest relaxation is in addition to the existing facility already available under the foreign trade policy upon payment of composition fees, according to the DGFT. "This is a timely and welcome decision by the government which will provide much-needed relief to exporters," said Ajay Sahai, director general, Federation of Indian Export Organisations.