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Deadline for import duty exemption on cotton extended till December 2025, temporary relief to textile industry facing tariffs
Tariffs: The government has extended the import duty exemption on cotton till December 2025 to provide US tariff relief to the textile sector. CITI General Secretary Chandrima Chatterjee said the decision is a result of persistent appeals from industry representatives.
The Centre has prolonged the import duty exemption on cotton up to December 2025. The move has been made to extend US tariff relief to the textiles industry. According to the Finance Ministry, the move is aimed at ensuring adequate availability of cotton for the domestic textile industry.
The release said that to increase the availability of cotton for the Indian textile sector, the Centre had temporarily exempted import duty on cotton from August 19, 2025 to September 30, 2025. To further support exporters, the Centre has decided to extend the import duty exemption on cotton (HS 5201) from September 30, 2025 to December 31, 2025.
Earlier this month, textile associations had welcomed the exemption of customs duty on cotton imports up to September 30, terming it as an instant relief for manufacturers and exporters who have been facing erratic supplies.
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CITI General Secretary Chandrima Chatterjee said the decision was a result of persistent appeals from industry representatives. He said it is a great move for Indian industry, and if it gives any positive signal to the talks, I think it is beneficial for both sides.
Earlier, Confederation of Indian Textile Industry (CITI) President Rakesh Mehra on Tuesday indicated the significance of the textile industry in the national economy. He informed that India's textile and apparel industry accounts for around 2 per cent of the nation's GDP. It is one of the biggest sectors that offer employment and livelihood.
He further informed that the US remains the largest market for Indian textile and apparel goods. It accounts for about 28 per cent of exports. In 2024-25 alone, India's exports of these products to the US were worth about $11 billion. China is the largest supplier of textile and apparel to the US, followed by Vietnam, India, and Bangladesh. Currently, the US tariff rates for Vietnam and Bangladesh are 20 per cent, which is much lower than the 50 per cent imposed on Indian product exports.
