India exempts cotton import duties
Analysis based on 9 articles · First reported May 30, 2026 · Last updated May 30, 2026
The exemption of customs duties on cotton imports is expected to significantly benefit the textile and apparel sector in India>>>. This will lead to reduced input costs, improved cotton availability, and enhanced global competitiveness for Indian exporters, potentially boosting export orders and stabilizing the entire textile value chain. The move is likely to have a positive impact on the stock prices of textile companies in India>>>.
The government of India>>> has temporarily exempted all customs duties on cotton imports for five months, from June 1 to October 30, 2026. This decision, announced by the India — Ministry of Textiles>>> and notified by the India — Ministry of Finance (India)>>>, aims to improve cotton availability, reduce input costs, and strengthen the competitiveness of India>>>'s textile sector. Industry bodies such as the Gem & Jewellery Export Promotion Council (AEPC), led by Chairman A. Sakthivel>>>, and the Confederation of Indian Textile Industry>>> (CITI), chaired by Ashwin Chandran>>>, have widely welcomed the move as a timely relief. They highlighted that the previous 11% import duty was a major hindrance to global competitiveness, especially for small and medium enterprises (MSMEs) facing volatile cotton and yarn prices. The measure is expected to moderate domestic cotton prices and enable garment exporters to secure orders more competitively, contributing to India>>>'s target of $100 billion in textile and apparel exports by 2030. A. Sakthivel>>> also urged spinning mills to pass on the benefits of lower cotton costs by rationalising yarn prices.
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