Centre Extends Customs Duty Exemption on Cotton Imports to Dec 31, 2026

Centre extends customs duty exemption on cotton imports till December 31

New Delhi, Oct 31

Through the amendment, the existing exemption, which was available until October 31, 2026, has now been extended by two months.

The aim is to address specialised cotton requirements and support value addition across the textile and apparel value chain, the Ministry of Textiles said in a statement.

"The measure is expected to provide greater flexibility to textile and apparel manufacturers in meeting their raw material requirements, help ease input cost pressures, support Micro, Small and Medium Enterprises (MSMEs), and strengthen the competitiveness of Indian textiles in domestic and international markets," the statement said.

According to the government, this move is expected to facilitate uninterrupted availability of raw materials, improve operational flexibility for the textile industry, and promote greater value addition across the cotton-based textile and apparel sector.

Meanwhile, India's textile sector recorded strong export growth in August 2026, with total exports up 16.1 per cent year-on-year to Rs 29,776 crore. The cumulative textile exports during April-August 2026 reached Rs 1.43 lakh crore, registering growth of 10.3 per cent over the corresponding period of the previous year.

The exports of cotton yarn, fabrics, made-ups and handloom products grew by 24.1 per cent in August, while man-made yarn, fabrics and made-ups increased by 19.9 per cent.

The ministry said it remains committed to promoting a competitive, resilient and globally integrated textile sector, advancing value addition and employment generation, and fostering the long-term growth of the entire textile value chain.

Notably, the conclusion of negotiations for the India-EU Free Trade Agreement in January 2026 provided a significant boost to India's textile sector. The agreement provided preferential market access on 96.8 per cent of tariff lines covering 99.5 per cent of India's exports, with 90.7 per cent of exports by trade value expected to become duty-free upon coming into force.

— IANS