India has extended its customs duty exemption on cotton imports by two months, to 31st December 2026, in a move intended to improve raw-material availability and reduce input costs for textile and apparel manufacturers.
The Department of Revenue, under the Ministry of Finance, issued Notification No. 35/2026-Customs on 30th October. It amends a May notification that had exempted cotton imports from an 11% duty until 31st October.
The government said the measure would augment domestic cotton supplies, address specialised fibre requirements and support value addition across the textile and apparel value chain. It is also expected to ease cost pressures for micro, small and medium enterprises.
“The extension is expected to help reduce input costs across the textile and apparel sector, thereby providing targeted relief to manufacturers and consumers, while also keeping the interests of domestic farmers in mind,” the finance ministry said.
The decision may increase import competitiveness during India’s harvesting season, raising questions for domestic cotton growers.
