ProIndiaClub

The Government of India, through the Directorate General of Foreign Trade (DGFT), has issued Policy Circular No. 10/2025-26 dated February 26, 2026, to provide essential relief to exporters facing declining export trends.

Key Highlights of the Relief Measure:

• Targeted Assistance: This relief is specifically designed for sectors or product groups that experienced a decline in total exports of more than 5% during the 2024-25 financial year compared to 2023-24.
• Reduced Export Obligation (EO): For eligible sectors, the Average Export Obligation (EO) for the year 2024-25 will be reduced proportionately to the actual reduction in exports for that particular product group.
• Automatic Re-fixing: Regional Authorities (RAs) of the DGFT have been directed to re-fix the Annual Average EO for EPCG (Export Promotion Capital Goods) Authorizations for the relevant year accordingly.
• Formal Documentation: Any such reduction in EO will be officially endorsed in the license file and issued as an amendment sheet to the EPCG Authorization holder.

Affected Sectors and Product Groups:

The policy includes an extensive list of product groups across various industries that have seen significant declines. Some examples of sectors experiencing export contraction include:

• Agricultural and Food Products: Items such as live fish, meat offal, wheat, maize, and certain fresh vegetables.
• Industrial Materials: Specific types of iron ores, copper concentrates, petroleum oils, and various chemical compounds.
• Consumer Goods: Products like footwear polishes, specific beauty preparations, and certain wooden articles, Textile Articles.