The Centre has exempted customs duty on cotton imports for five months to ensure adequate availability of the raw material at competitive rates to domestic textiles industries.
The temporary duty exemption, effective from June 1 to October 30, 2026, aims to reduce input costs across the textile and apparel sector, providing targeted relief to manufacturers and consumers.
The move is expected to have a positive impact on the performance of the domestic textile industry, especially small and medium enterprises (SMEs), ensuring better availability of cotton in the market.
Confederation of Indian Textile Industry (CITI) said the temporary removal of 11% import duty on cotton can help Indian textile and apparel sector become more competitive in the international market amid global headwinds.
