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India Boosts Textile Sector with Cotton Import Duty Relief
31 Oct
Summary
- Customs duty exemption on cotton imports extended until December 31.
- Decision aims to ensure raw material availability and ease cost pressures.
- Domestic cotton prices remain firm due to production concerns.
The Indian government has extended the customs duty exemption on cotton imports, now valid until December 31. This decision is a strategic move to bolster the domestic textile industry by ensuring a consistent supply of raw materials.
The waiver, initially implemented from June 1 to October 31, offers manufacturers greater flexibility in sourcing cotton at reduced costs. This is particularly important as domestic cotton prices have stayed firm due to concerns over monsoon-related production losses.
The extension is expected to alleviate input cost pressures for textile and apparel manufacturers, offering vital support to micro, small, and medium enterprises. It also aims to enhance the overall competitiveness of Indian textiles on a global scale.
The Ministry of Finance, through the Department of Revenue, officially notified the extension. This measure intends to improve domestic cotton availability and meet the industry's specific needs, thereby encouraging value addition across the textile and apparel value chain.
