Is India’s Textile Industry About To Get A Major Makeover? Cotton Import Duty Waiver Sparks Hopes!

The latest policy support on cotton imports has come as a boost for the textile sector says Industry body the Confederation Of Indian Textile Industry (CITI).

CITI Secretary General Praises Government’s Cotton Import Duty Waiver

Chandrima Chatterjee, Secretary General , CITI said, “It’s a great move for the Indian industry, and if that also gives any positive signal to the negotiations, then I think it’s a win-win for both sides. But I think the primary trigger has been the repeated concern being raised by the industry bodies and the associations.”

She also believes that, over the last 2 years, this intervention has been working towards helping bring some more price competitiveness in this sector and stabilising the cotton prices, which have seen a lot of fluctuations lately.

The Indian textile industry has welcomed the government’s decision to waive customs duty and Agriculture Infrastructure and Development Cess (AIDC) on the import of cotton till September 30, calling it a timely relief for the sector battling volatile prices and supply pressures.

Reacting to the announcement, Confederation of Indian Textile Industry (CITI) Chairman, Rakesh Mehra, said, “The removal of the import duty on cotton, though only for a brief period, signals the government’s strong commitment to help India’s textile sector become stronger and more globally competitive.” He noted that the demand for such a measure had been pending for a long time within the industry.

India Aims to Boost Textile Exports to USD 100 Billion by 2030

“CITI would like to thank the Hon’ble Prime Minister, all other concerned authorities and different Ministries, especially the Finance, Textile, Agriculture and Commerce Ministries, for appreciating the concerns of the Indian textile sector and providing us the necessary support through this very progressive measure,” Mehra added.

Industry leaders believe the step will provide relief across the cotton value chain, which directly employs nearly 35 million people and accounts for about 80 per cent of India’s total textile exports. India has set a target to more than double textile and apparel exports to USD 100 billion by 2030.

The Central Government on Monday announced a complete waiver of customs duty and Agriculture Infrastructure and Development Cess (AIDC) on the import of raw cotton.

According to a notification issued by the Ministry of Finance, the exemption will be applicable on cotton falling under heading 5201 of the Customs Tariff Act, 1975. The waiver will come into effect from August 19, 2025, and remain valid till September 30, 2025.

The Finance Ministry said the decision was taken in public interest to ease raw material costs for domestic manufacturers and exporters at a time when the textile sector has been facing price volatility and supply pressures. (Inputs from ANI)

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