Temporary Relief for Textile Industry: Cotton Import Duty Removed
19-Aug-2025 10:33 AM
Temporary Relief for Textile Industry: Cotton Import Duty Removed
★ India has scrapped import duty on cotton until September 30.
★ The government’s decision has brought major relief to the textile industry, as industry associations had long been demanding this step.
★ The move comes at a time when the U.S. has imposed a steep 50% tariff on garment imports from India — comprising an existing 25% levy and an additional 25% set to take effect at the end of this month. This effective rate is much higher compared to ★ Bangladesh (20%), Vietnam (20%), and China (30%).
★ Earlier, cotton imports in India were subject to an 11% duty. Now, industry players hope the government may extend the duty-free window beyond September 30.
★ While the removal of import duty benefits the textile sector, it could negatively impact India’s cotton industry and farmers.