Customs Duty Waiver on Raw Cotton Set to Boost Textile Industry

The Central Government's latest policy move has delivered a significant boost to the textile and garment industry with the announcement of a complete waiver of customs duty and Agriculture Infrastructure and Development Cess on imported raw cotton. The Finance Ministry confirmed this development on Monday.

The exemption applies to cotton classified under heading 5201 of the Customs Tariff Act, 1975, and is set to take effect from August 19, 2025, lasting until September 30, 2025. The Finance Ministry stated that this decision was made in the public interest to alleviate raw material costs for domestic manufacturers struggling with price volatility and supply challenges.

Industry leaders anticipate that this temporary relief will stabilize yarn prices and enhance the competitiveness of Indian garments on a global scale, particularly benefiting small and medium enterprises. This strategic measure is well-timed with the festive season on the horizon when demand for cotton-based goods typically spikes.

(With inputs from agencies.)