India extends zero customs duty on cotton imports until end-2026

India's textile sector has received a significant boost as the government extended the zero customs duty on cotton imports, addressing concerns over domestic supply constraints and declining production forecasts.

The extension, announced for a two-month period, pushes the duty-free import window to December 31, 2026. The move comes as the textile industry faces headwinds from reduced cotton availability in the domestic market and anticipated production shortfalls in the coming months.

The duty exemption is designed to provide textile manufacturers with easier access to raw cotton at competitive prices, enabling them to maintain production levels and meet export commitments. By removing tariff barriers, the government aims to stabilize input costs for spinning mills and garment manufacturers who depend heavily on cotton supplies.

Industry observers note that the extension reflects government support for the textile sector, which remains a significant contributor to India's manufacturing output and employment. The measure is expected to help mills operate at optimal capacity during a period when domestic cotton procurement could prove challenging.

The decision underscores the government's continued focus on enabling the textile industry to navigate supply-side challenges while maintaining competitiveness in global markets.