India Removes Duty On Cotton Imports Till Sept. 30 Amid US Tariff Pressure
By removing the duty temporarily, the government aims to smoothen raw material availability and protect export momentum ahead of the festive season.
The government has scrapped the 11% import duty on raw cotton for a period of 42 days, up to September 30, in a bid to provide temporary relief to the textile industry grappling with higher input costs and fresh tariff challenges from the US.
A gazette notification issued late Monday said the exemption was being granted as a “necessary” measure and “in public interest.” The move is expected to benefit the entire textile value chain, including yarn, fabric, garments, and made-ups, by easing cost pressures at a critical time.
The decision comes as Indian exporters face additional tariff headwinds in their key US market. Industry representatives had flagged that elevated cotton prices, coupled with duty structures, were eroding competitiveness in labour-intensive sectors such as apparel and home textiles.
By removing the duty temporarily, the government aims to smoothen raw material availability and protect export momentum ahead of the festive season. However, officials signalled the relief was short-term, and the duty waiver will lapse on Sept. 30 unless extended.
The textile and apparel industry, one of India’s largest employers, has been under stress due to volatile global cotton prices and weak external demand.
