NEW DELHI: In a major move to boost the availability of raw materials for India’s textile sector, the central government has announced a temporary exemption from all customs duties on cotton imports. The duty-free window will remain in effect from June 1, 2026, through October 31, 2026.
According to an official statement from the Ministry of Finance, the intervention is projected to significantly lower input costs across the entire textile and apparel value chain. This will provide targeted relief to domestic manufacturers and ultimately benefit end consumers. The government emphasized that the decision was carefully structured to support industrial manufacturing while keeping the core interests of domestic cotton farmers in mind.
The five-month duty exemption is also expected to act as a vital lifeline for small and medium enterprises (SMEs) within the domestic textile industry by ensuring an adequate, uninterrupted supply of cotton in the marketplace. Officials believe this competitive cushioning will strengthen the sector’s overall performance and enhance its global competitiveness during the exemption period.
The temporary waiver will automatically expire on October 31, 2026, after which the existing customs duty structure on cotton imports will resume unless further extensions are notified by the government.
