Politics · India Bureau
India extends cotton import duty exemption through end-2026
The government has prolonged its customs duty waiver on cotton imports by two months to December 31, 2026, in a bid to support textile manufacturers. The move aims to ease input costs for the domestic textile and apparel sector while balancing farmer interests.
LSN India ·
India's Department of Revenue has notified an extension to the existing customs duty exemption on cotton imports, pushing the deadline from October 2026 to December 31, 2026, according to an announcement from the textile ministry on Saturday. The notification was issued on October 30 by the Ministry of Finance.
The exemption, originally implemented in May for a five-month period ending October 31, 2026, has now been extended by two additional months. The government cited the raw material requirements of India's domestic textile industry as the primary rationale for the extension.
Official sources indicated the measure is intended to reduce production costs across the textile and apparel manufacturing sectors, providing relief to both manufacturers and consumers. The extension reflects New Delhi's effort to balance industry support with protection of domestic cotton farmers' interests.
The customs duty waiver is part of the government's broader strategy to maintain competitiveness in India's textile sector while managing commodity input expenses. The measure applies to cotton imported for use as raw material in domestic textile production.