The Indian government has waived all customs charges on cotton imports in order to boost the country's textile industry from June 1 to Oct. 30, 2026. The move is intended to increase the domestic textile industry's access to raw materials.
"The temporary duty exemption is expected to reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind," the Ministry of Finance said in a statement.
It further stated that the action is anticipated to boost the domestic textile industry's performance, especially for small and medium-sized businesses that rely on a consistent cotton supply.
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A notification granting complete exemption from both the Agriculture Infrastructure and Development Cess (AIDC) and basic customs duty on imported cotton was released by the Finance Ministry. The waiver is valid through Oct. 30, 2026.
"The Central Government, on being satisfied that it is necessary in the public interest, hereby exempts cotton, when imported into India, from the whole of the duty of customs leviable thereon under the Customs Tariff Act and from the whole of the Agriculture Infrastructure and Development Cess," according to the notification.
The decision is intended to increase cotton availability for India's textile industry, which has been looking for ways to guarantee sufficient supplies and reasonable input costs.
The action is anticipated to reduce the price of imported cotton and guarantee a consistent supply of the essential raw material for the forthcoming production season.
"Overall, the measure is anticipated to have a positive impact on the performance of the domestic textile industry, especially the small and medium enterprises, ensuring better availability of cotton in the market," the government statement further said.
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The Department of Revenue issued the customs notification using authority granted by the Finance Act of 2021 and the Customs Act of 1962. It said that the government was convinced that it was in the public interest to grant the exemption.
One of India's biggest manufacturing sectors and a significant cotton consumer is the textile and garment industry. In times of limited domestic supply and high raw material prices, industry players have frequently sought reduced import costs.
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