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In its latest notification dated August 18, the Finance Ministry has exempted duty on cotton imports from August 19 till September 30, 2025.

The scrapping of import duty is to ensure availability of the raw material at globally-competitive rates to the country’s textile sector. 

Cotton is subject to an 11 per cent import duty along with the Agriculture Infrastructure and Development Cess (AIDC). Domestically, the sector also faces duty inversion under the GST regime.

 

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The import duty-relief by India comes in the wake of the US administration imposing a steep 50 per cent duty on Indian imports to the US, a move that has the Indian textile industry worried. 

The US tariff comprises an existing 25 per cent levy and an additional 25 per cent, which might take effect from August 27, imposed as a penalty for India's purchases of Russian oil.