New Delhi (Rajeev Sharma): In a bid to ensure smooth supply for the textile and apparel sector, the Central Government has announced an extension of the import duty exemption on raw cotton (HS 5201) till December 31, 2025.
The waiver was first introduced for the period August 19 to September 30, 2025, to ease raw material shortages faced by spinning units and exporters. With the latest decision, industry players will now have additional time to import cotton without the burden of customs duty.
Officials said the move is aimed at supporting India’s textile value chain, which has been under pressure due to price fluctuations in the global cotton market. The extension is also expected to improve export competitiveness by reducing production costs for manufacturers.
Trade analysts believe the relief measure will particularly benefit small and medium enterprises engaged in garment production, while also stabilising domestic availability ahead of the peak festive and export season.
The duty-free window will now continue till the end of the calendar year, after which the government will review market conditions before taking a further call.
