The Government of India has temporarily suspended import duties on cotton until September 30, 2025, offering relief to the country’s textile and garment industry, which has been hit by the 50% tariff imposed by US President Donald Trump.
A government notification issued late Monday by the Central Board of Indirect Taxes and Customs (CBIC) stated that all imports under heading 5201—covering raw cotton—would be exempt from duties during this period. Before the exemption, cotton imports carried an 11% duty.
The move comes as the US escalates trade tensions, penalising India for continuing to import Russian oil. Trump’s tariff comprises an existing 25% levy and an additional 25% surcharge set to take effect later this month.
Industry bodies, including the Confederation of Indian Textile Industry (CITI), had been pressing for the removal of import duties to help Indian exporters stay competitive in the global market.
The development buoyed investor sentiment, with textile majors such as Vardhman Textiles, Raymond Lifestyle, Indo Count, and Welspun Living rising 3–8% in early Tuesday trading, according to Reuters.
India’s Response to US Tariffs
New Delhi has sharply criticised Washington’s actions, calling them “unfair, unjustified and unreasonable.”
“Our imports are based on market factors and aimed at ensuring the energy security of 1.4 billion people. It is extremely unfortunate that the US has chosen to penalise India for actions that several other countries are also undertaking,” the Ministry of External Affairs said in a statement.
India reaffirmed that it would take “all necessary actions” to safeguard its national interests amid the ongoing trade dispute.
