The Indian government is in an advanced stage of consultation regarding the textile industry’s demand to remove customs duty on raw cotton imports, a senior official confirmed on May 23, 2026.
Industry Concerns
The textile industry has been urging the government to eliminate the 11 per cent customs duty on raw cotton imports amid rising prices, seeking mitigation of cost pressures on domestic manufacturers. The industry has consistently made this demand due to escalating input costs affecting competitiveness.
Previous Duty Relief
In August 2025, the central government temporarily suspended the 11 per cent customs duty on cotton imports, reducing it to 0 per cent from August 19 to September 30, 2025. This temporary exemption was implemented to provide relief to the domestic textile industry, which was already facing challenges from higher tariffs of 50 per cent imposed on shipments to the US market.
The temporary suspension allowed cotton imports at zero-rated duty compared to the earlier 11 per cent, with the industry hopeful that this exemption might be extended beyond its September 30 deadline.
Current Status
The government is now actively examining the removal or reduction of the 11 per cent import duty on cotton, with consultations at an advanced stage. This move would address the long-standing demand from the textile sector for relief on cotton import duties.
