Government Extends Duty-Free Cotton Imports Till December 31, Textile Sector Gets Relief

The Indian government has extended the exemption on import duties for cotton till December 31, bringing much-needed relief to the textile industry. The decision comes at a time when global trade tensions, including US tariffs, have created challenges for India’s textile exports. For thousands of small and medium textile units, especially in cities like Surat, Tiruppur, and Nagpur, this extension offers breathing space to manage rising costs.

Cotton is a key raw material for India’s vast textile sector, which employs millions and supports regional economies. Import duties had earlier raised concerns among manufacturers who were struggling with price fluctuations in the global market. By keeping cotton imports duty-free, the government aims to stabilize input costs and protect competitiveness in international markets.

The move also comes against the backdrop of pressure on Indian exporters due to shifting trade policies. Higher tariffs imposed by the US on certain textile products have already hit margins. Industry experts believe that easing raw material costs will at least reduce part of the burden, enabling manufacturers to sustain operations and protect jobs.

For Tier 2 cities that depend heavily on textile clusters, such as Coimbatore, Bhiwandi, and Erode, the exemption is significant. These regions rely on affordable cotton to run power looms and garment units that cater not only to domestic demand but also international buyers. Any rise in input costs directly affects local employment and income levels.

While the extension is welcomed, stakeholders say the government should also consider long-term strategies to strengthen cotton production within India. Investments in farming, technology, and supply chain efficiency could reduce dependence on imports and make the industry more resilient to global shocks.

In the short term, this move offers stability and confidence to India’s textile sector. By extending duty-free cotton imports, the government has sent a clear message that supporting jobs and industries remains a priority, especially when global trade uncertainties continue to loom.