Government Waives Customs Duty on Cotton to Support Textile Industry
The Central Government announced a customs duty and AIDC waiver on raw cotton imports, effective from August 19, 2025, to September 30, 2025, to aid the textile industry. The measure aims to stabilize yarn prices and support domestic manufacturers amidst volatile global market conditions.
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In a strategic move to bolster India's textile and garment industry, the Central Government has declared a complete waiver of customs duty and Agriculture Infrastructure and Development Cess (AIDC) on the import of raw cotton, effective from August 19, 2025.
The Ministry of Finance's notification specifies that this waiver, targeting cotton under heading 5201 of the Customs Tariff Act, 1975, is set to ease raw material costs for domestic manufacturers and exporters until September 30, 2025. This initiative comes as the industry grapples with price volatility and supply chain pressures.
This decision is anticipated to stabilize yarn prices, enhance the competitiveness of Indian garments globally, and invigorate small and medium enterprises within the textile supply chain. The waiver is especially crucial with the impending festive season, which typically sees a surge in demand for cotton products.
(With inputs from agencies.)
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