Government extends cotton import duty waiver to Dec 31, 2025, boosting textile sector and exporters.
In a relief measure for India’s textile and export sector, the Central Government has extended the import duty exemption on cotton (HS 5201) till December 31, 2025.
The exemption, which was initially introduced from August 19, 2025, to September 30, 2025, has now been extended by three more months. The decision comes as part of efforts to ease raw material costs, ensure steady cotton availability for the textile industry, and support exporters in meeting global demand.
India’s textile sector, one of the country’s largest employers and export contributors, has been grappling with fluctuating cotton prices and supply constraints. By removing import duties, the government aims to stabilize input costs and enhance the competitiveness of Indian garments and textiles in global markets.
The extension is expected to bring immediate relief to spinning mills, garment manufacturers, and exporters, especially ahead of the peak festive and global order season.
This move reflects the government’s continued focus on strengthening India’s textile value chain and supporting the sector’s contribution to both domestic growth and foreign exchange earnings.
Source: PIB
