Textile and apparel stocks rallied in early trade on Monday after the Government of India announced a temporary exemption of customs duties on cotton imports, a move aimed at improving raw material availability and supporting the domestic textile industry.
In a notification issued on Saturday, the Ministry of Finance said that all customs duties on cotton imports would be waived from 1st June 2026 until 30th October 2026. Cotton imports, which previously attracted an effective duty of 11%, will now enter the country duty-free during the five-month period.
The government said the measure is intended to enhance the availability of cotton for the Indian textile sector at a time when domestic prices remain elevated. The exemption is expected to ease raw material costs for textile and apparel manufacturers that depend on imported cotton, thereby supporting profitability and operational margins.
Investor sentiment responded positively to the announcement, with several textile and apparel companies posting strong gains in early trading. Vardhman Textiles rose 6%, while Arvind surged 6.44% to hit a 52-week high on the National Stock Exchange. Nitin Spinners gained 5.53%, followed by Himatsingka Seide at 5%. Welspun Living and Trident each advanced 4%, while Gokaldas Exports also climbed 4%.
Among other gainers, KPR Mill rose 2.2%, while Kitex Garments and Pearl Global Industries each gained 2%. Shares of Kewal Kiran Clothing traded largely unchanged.
According to the Ministry of Finance, the temporary duty exemption is expected to reduce input costs across the textile and apparel value chain, offering targeted relief to manufacturers and consumers while balancing the interests of domestic cotton farmers.
The ministry further stated that the measure is likely to have a positive impact on the performance of the domestic textile industry, particularly small and medium-sized enterprises, by ensuring improved cotton availability in the market.
Bharat Tex Special Report 2026 
