India's Cotton Duty Cut: Boosting Textile Industry Amid U.S. Tariffs

The Indian government has announced an extension of the import duty exemption on cotton until December 31, 2025. The move is expected to bolster the country's textile industry by stabilizing input costs across the textile value chain, while also offering relief to manufacturers and consumers.

The exemption comes at a crucial time, as steep 50 percent tariffs on Indian goods imposed by the U.S., India's largest export market for textiles and apparel, take effect. The decision seeks to enhance the global competitiveness of Indian textiles, reviving orders for small and medium enterprises as well as export-oriented units.

The Textile Ministry highlights the importance of a stable, high-quality cotton supply for the second-largest employment sector in the country, emphasizing that the import duty exemption will indirectly benefit farmers. The government has assured that farmers will continue to be protected by the Minimum Support Price mechanism, ensuring they receive fair compensation.

(With inputs from agencies.)