India Temporarily Removes Cotton Import Duty to Support Textile Sector
Trending Today India Temporarily Removes Cotton Import Duty to Support Textile Sector India–China Border Rapprochement Signals Strategic Shift Amid U.S. Tensions NATO Weighs Security Guarantees for Ukraine Without Offering Membership NATO Weighs Security Guarantees for Ukraine Without Offering Membership India-China Border Rapprochement Signals Strategic Shift Amid U.S. Tensions Dollar Holds Firm as Global Markets Await Ukraine Peace Summit and Fed Policy Signals Dollar Holds Firm as Global Markets Await Ukraine Peace Talks Trump–Putin Summit in Alaska: A Diplomatic Gamble on Ukraine Trump–Putin Summit in Alaska: A Diplomatic Gamble on Ukraine LEGAL JOB OPPORTUNITY AT R.N. SINGH AND ASSOCIATES India Temporarily Removes Cotton Import Duty to Support Textile Sector Prabhat Kumar Biltoria 02 June 2025 On 19 August 2025, the Government of India announced a temporary waiver of cotton import duty from 19 August to 30 September 2025. The move eliminates the 11% duty on cotton imports and aims to provide much-needed relief to India’s textile and garment industry, which is struggling under steep 50% U.S. tariffs on exports. Background tariffs and Trade Pressure The Confederation of Indian Textile Industry (CITI) raised concerns over mounting trade barriers: The U.S. imposed a 25% base tariff plus a 25% surcharge, raising costs sharply. Competing nations like Bangladesh (20%), Vietnam (20%), and China (30%) face lower duties, making Indian exports less competitive. Labor shortages and capacity constraints have further weakened India’s textile momentum, challenging the Make in India initiative. Details of the Policy Change Duration Effective 19 August – 30 September 2025 (extension under review). Duty Shift The 11% import duty on cotton has been fully waived during this period. Expected Outcome Reduced input costs for textile and garment manufacturers. Protection of export competitiveness despite steep U.S. tariffs. Policy Intent Safeguard employment across the textile value chain. Maintain India’s share in the global garment export market. Strategic Implications Short-Term Relief The waiver provides immediate breathing space for exporters, keeping factories running while trade negotiations progress. Export Competitiveness Without this measure, India risked losing production to East Asia, where supply chains are cost-efficient and government policies more favorable. Policy Messaging This decision reinforces the government’s commitment to industrial resilience amid global trade uncertainties. Expert Reaction Industry leaders applauded the decision as both timely and necessary. However, some economists cautioned that temporary relief must be complemented by long-term trade solutions, such as: Bilateral negotiations with key markets. Preferential trade agreements to reduce tariff exposure. Conclusion The cotton import duty waiver is a swift policy intervention aimed at stabilizing India’s textile and garment sector. As the September 30 deadline approaches, attention will focus on whether the government pursues extended relief or a broader diplomatic trade strategy to ensure sustainable growth for India’s exporters. Leave a Reply Cancel Reply Logged in as Aliya Ansari. Edit your profile. Log out? Required fields are marked * Message* Case Laws K Umadevi vs Government of Tamil Nadu 2025: Supreme Court Recognizes Maternity Leave as Fundamental Reproductive Right Sada Law • June 20, 2025 • Case law • No Comments Supreme Court Judgment on Affinity Test in Scheduled Tribe Verification: Affinity Test Not Mandatory for ST Claims Sada Law • June 20, 2025 • Case law • No Comments Supreme Court Grants Bail Despite NDPS Act Section 37: Upholds Article 21 in Mohd. Muslim v. State (NCT of Delhi) Sada Law • June 20, 2025 • Case law • No Comments 1 2 3 … 5 Next »
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