Streamlining Trade for Exporter Liquidity
The Directorate General of Foreign Trade (DGFT) concluded a focused campaign in March 2026 that dramatically accelerated the issuance of Export Obligation Discharge Certificates (EODCs). This initiative, targeting the Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes, directly helps exporter cash flow by freeing up capital previously tied in bank guarantees and reducing administrative burdens. The successful campaign processed 12,690 EODCs, a large increase from the 3,747 cleared in February.
The Surge in EODC Approvals
March 2026 saw a rapid increase in EODC approvals. For the Advance Authorisation scheme, approvals jumped by 242%, while the EPCG scheme saw a 234% rise compared to the previous month. This high volume cleared 59% of the pending AA pipeline and 54% of the EPCG pipeline in just one month. Overall, 97% of available AA EODC cases and 98% of EPCG EODC cases were processed. This reduced the total in-progress cases from 15,360 to 3,966, even with new applications coming in.
Unlocking Exporter Capital and Enhancing Competitiveness
EODCs are crucial for formally closing export commitments, allowing exporters to get back bank guarantees and bonds. The faster clearance directly improves working capital for businesses, which is crucial for operations and seeking new chances. This added liquidity is especially impactful as India's overall exports have shown strength, with cumulative exports reaching USD 714.73 billion in FY 2025–26 (April-January). The DGFT's move fits the broader goal of improving India's 'Ease of Doing Business,' aiming to boost the competitiveness of Indian exports globally.
India's Trade Facilitation Edge
This campaign's success shows India's ongoing work to improve trade facilitation. India has consistently climbed its ranking, achieving a score of 93.55% in the 2023 UNESCAP Global Survey on Digital and Sustainable Trade Facilitation. This placed it first in South Asia and ahead of several developed economies. Initiatives like 'Turant Customs' and streamlined digital processes have helped make these processes more efficient. The Advance Authorisation and EPCG schemes are designed to lower import duties on inputs and capital goods, respectively, further supporting export production.
External Challenges Remain
While the March campaign highlights significant administrative efficiency, the sustainability of this pace needs monitoring. Furthermore, the global economic climate presents ongoing challenges. Notably, recent geopolitical events led to automatic extensions of Export Obligation (EO) periods for specified Advance Authorisations and EPCG Authorisations until August 31, 2026, due to disruptions in shipping routes and supply chains. This shows that while internal processes can be improved, global demand and stable logistics are key external factors this initiative can't control. Exporter success ultimately depends on both smooth administrative processes and strong global market conditions.
The Future Outlook
Recognizing the positive impact and the ongoing need for flexibility, the DGFT has extended the special drive for EODC issuance for an additional two months, through May 2026. This extension, along with the automatic EO period extensions for exporters facing geopolitical disruptions, signals a sustained government focus on supporting the export ecosystem and easing compliance burdens.