India has announced a temporary exemption on all customs duties and levies imposed on cotton imports, aiming to ensure adequate raw material availability and enhance the competitiveness of its textile and apparel sector.
According to a notification issued by the country’s finance ministry, imported cotton will be exempt from both Basic Customs Duty and the Agriculture Infrastructure and Development Cess (AIDC) from 1 June to 30 October 2026.
The measure is expected to reduce the cost of imported cotton and help manufacturers secure sufficient raw materials during the upcoming production season.
In its notification, the finance ministry stated that the exemption was granted in the public interest, removing the full customs duty burden previously applicable on cotton imports under the Customs Tariff Act and related levies.
The Ministry of Textiles said the decision reflects a balanced approach designed to support the entire cotton value chain while protecting the interests of domestic cotton growers.
Officials noted that the duty waiver has been strategically introduced during the cotton off-season to address supply constraints, moderate input costs and strengthen the global competitiveness of India’s textile sector.
The ministry further stated that the initiative would particularly benefit micro, small and medium-sized enterprises (MSMEs), which have been facing increasing pressure from fluctuating raw material prices and supply shortages.
Industry stakeholders have long advocated for a reduction in cotton import duties, arguing that easier access to imported fibre would help stabilise supply, improve manufacturing efficiency and support export growth.
The temporary duty exemption is expected to improve cotton availability across the domestic market, reduce production costs and provide additional support to textile manufacturers ahead of peak production periods.
As one of the world’s largest textile and apparel producers, India continues to implement policy measures aimed at strengthening supply chain resilience, supporting manufacturers and maintaining its competitiveness in global textile markets.
