EPCG/Advance license scheme is introduced by the Government with a single objective to increase exports from India. Therefore, it allows duty-free import of capital goods, to make our products more competitive in the global market.
The government is assigning a task to you in return for the duty benefit. The task is to increase your export sales as compared to previous years with the help of the EPCG/Advancelicense scheme. This job given to you to increase export sales is known as an export obligation.