Central Government Extends Import Duty Exemption on Cotton Till 31st December 2025
The Central Government has extended the import duty exemption on cotton (HS 5201) till 31st December 2025 to boost availability for the textile sector and support Indian exporters.
Central Government Extends Import Duty Exemption on Cotton Till 31st December 2025
In a move aimed at strengthening the Indian textile sector and supporting exporters, the Central Government has announced the extension of import duty exemption on cotton (HS 5201) till 31st December 2025.
Earlier, the government had temporarily exempted the import duty on cotton from 19th August 2025 to 30th September 2025. This measure was taken to ensure an adequate supply of raw cotton for domestic mills and to ease pressure on cotton prices in the Indian market.
The extension till December-end will provide additional relief to textile manufacturers, garment exporters, and allied industries that heavily rely on cotton as a raw material. By ensuring smoother imports, the government aims to stabilize input costs, enhance global competitiveness of Indian exporters, and ensure the availability of cotton for both domestic and international demand.
Industry experts believe that this decision will benefit spinning mills, weavers, and exporters, particularly at a time when global cotton prices are fluctuating. It also aligns with the government's larger vision of supporting the textile sector, which is one of India's largest employment-generating industries.
With this extension, India's textile industry is expected to maintain steady growth, boost exports, and strengthen its position in global textile markets.
