In a major move aimed at securing raw material availability for the domestic textile industry, the Government of India has extended the existing customs duty exemption on cotton imports up to December 31, 2026.
According to the notification issued by the Department of Revenue, Ministry of Finance, the amendment extends the previous exemption deadline—which was set to expire on October 31, 2026—by an additional two months.
The decision comes as part of the government’s balanced approach to supporting the growing raw material demands of Indian textile and apparel manufacturers while safeguarding the interests of domestic cotton farmers.
Key Benefits for the Textile & Apparel Sector
- Mitigating Input Costs: Easing pressure on raw material expenses for spinners, weavers, and garment manufacturers.
- Empowering MSMEs: Providing critical operational stability to Micro, Small, and Medium Enterprises (MSMEs) reliant on steady cotton supplies.
- Fulfilling Specialized Needs: Ensuring uninterrupted access to specific long-staple and specialized cotton varieties required for high-value exports.
- Global Competitiveness: Boosting India’s textile value chain and positioning exported apparel competitively in international markets.
Welcoming the move, the Ministry of Textiles highlighted that the extension will facilitate seamless production cycles, foster higher value addition, and protect employment across the country’s textile ecosystems.
