India’s government is expected to allow the current duty-free regime for cotton imports to expire on 31st December 2025, despite persistent calls from the domestic textile industry for an extension or complete removal of the nearly 11% import duty, industry sources have said.
Industry representatives had speculated that policymakers might grant additional time for duty-free imports as the deadline approaches. However, senior officials indicated that there is currently no formal proposal under consideration to prolong the exemption.
Sanjay K Jain, managing director of TT Limited and chairman of the ICC National Textiles Committee, told that the industry has continually advocated for the elimination of import duty to secure access to raw materials at globally competitive prices. He said he did not expect government approval of an extension when the Cotton Corporation of India (CCI) is actively procuring cotton and its purchases could reach about 10 million bales (170 kg each). He added that there was likely to be no scarcity of domestic cotton in the coming months of the current season.
Trade analysts said extending the duty-free window could depress local cotton prices, increase fiscal costs linked to minimum support price (MSP) intervention by the CCI, and potentially harm farmer incomes—factors that contribute to political resistance against a policy extension.
The government originally extended the duty-free import regime on cotton until 31st December 2025 to support textile manufacturers amid global tariff pressures and input cost challenges. The textile sector, one of India’s largest employers and exporters, has relied on duty-free access to stabilise raw material costs during periods of tight domestic supply and volatile global markets.
Textile industry bodies have continued to urge policymakers to remove the 11% import duty altogether to align domestic cotton prices with global rates and sustain export competitiveness, particularly in the face of weakening output and supply disruptions.
