The central Government has extended the exemption of import duty on cotton until December 31, offering relief to the country’s garment industry that has been impacted by steep tariffs on exports to the United States.
The duty exemption was first announced on 18th August, when imports of cotton were made duty-free until 30th September. According to a Press Information Bureau (PIB) release on Thursday, the extension is intended to “augment availability of cotton for the Indian textile sector.”
The PIB statement noted that the Government had initially exempted duties on cotton between 19th August and 30th September 2025, to ease raw material availability. It added that, in a further measure to support exporters, the exemption has now been extended from 30th September to 31st December 2025.
The relief comes as India’s textile and apparel exporters face a 50% tariff on shipments to the US. The Donald Trump-led administration imposed an additional 25% duty on 27th August, on top of the existing 25%, citing India’s continued purchase of Russian oil as the reason.
The textile and apparel sector is among the most exposed to the tariff shock. Key exporters include Shahi Exports, Welspun, Indo Count Industries, Trident and Gokaldas Exports, which supply major US retailers such as Walmart, Target, Costco and Gap.
