The Indian government has temporarily exempted customs duty on cotton imports to ensure the availability of the raw material at competitive rates for domestic textiles industries. The exemption will be in effect from June 1, 2026, to October 31, 2026.
The move aims to reduce input costs across the textile and apparel sector, providing relief to manufacturers and consumers while keeping the interests of domestic farmers in mind.
Confederation of Indian Textile Industry (CITI) chairman Ashwin Chandran said the temporary exemption will help the Indian textile and apparel sector become more competitive in the international market amid global headwinds.
India's textile exports are dominated by cotton, and the country competes with countries like Sri Lanka, Bangladesh, and Vietnam in the price-sensitive international apparel market.
With the temporary relief in cotton import duty, India's textile and apparel exporters can better leverage opportunities emerging from Free Trade Agreements (FTAs) with countries like the UAE, Australia, Oman, and the United Kingdom.
