India has scrapped the 11% import duty and the Agriculture Infrastructure and Development Cess on raw cotton for shipments arriving between 19 August and 30 September, according to an official order published late Monday night. The temporary waiver is aimed at lowering input costs for spinning mills and garment manufacturers, which have been lobbying for relief as global demand slows and raw-material prices stay elevated. Industry groups such as the Confederation of Indian Textile Industry said the move should help exporters stay competitive as they contend with a combined 50% tariff on apparel entering the United States—an increase that takes effect later this month. With Bangladesh, Vietnam and China facing lower levies, Indian producers had warned they might shift some production offshore without duty relief at home. The finance ministry has not indicated whether the concession will be extended beyond September, but officials and executives expect the question to be revisited when the industry’s peak buying season begins in October. New Delhi wants to lift textile and apparel exports to $100 billion by 2030, and the short-term tax holiday is seen as supporting that objective while the sector grapples with labour shortages and capacity constraints.
#India removes import duty on cotton in temporary relief for garment industry https://t.co/Mr97oQOx80
India removes import duty on cotton in temporary relief for garment industry https://t.co/BaDKbEHHRz https://t.co/BaDKbEHHRz
Central Government announced a complete waiver of customs duty and Agriculture Infrastructure and Development Cess (AIDC) on the import of raw cotton. The waiver will come into effect from August 19, 2025, and remain valid till September 30, 2025. https://t.co/wvHQNva2IU