Cotton Import Duty Cut Sought to Boost Textile Industry's Global Competitiveness

The Apparel Export Promotion Council (AEPC) is calling on the government to remove the 11% import duty on cotton, citing it as a barrier to competitiveness in the global textile market. Rising production costs are squeezing the Indian apparel industry as it navigates economic opportunities presented by new free trade agreements.

AEPC Chairman A Sakthivel recently appealed to multiple ministers, including Piyush Goyal from Commerce and Industry, pressing for a zero-duty regime. Industry representatives argue that Indian manufacturers are at a disadvantage compared to international counterparts who access cotton at lower prices, thereby curbing India's export edge.

To maintain growth momentum, industry leaders emphasize that reducing the import duty is crucial. With a projected cotton shortfall of 45 lakh bales, the industry is anticipating significant challenges as it faces increasing input costs and limited raw material availability. Such measures could potentially improve employment, investment, and growth across the textile value chain.

(With inputs from agencies.)