The Indian government has extended the customs duty exemption on cotton imports until December 31, 2026. The move is aimed at ensuring a steady supply of raw materials to the domestic textile sector and promoting value addition across the entire cotton-based textile and apparel industry.
The Government of India has announced an extension in the existing customs duty exemption on cotton imports for an additional two months. The Department of Revenue, Ministry of Finance, notified this extension through Notification No. 35/2026-Customs dated October 30, 2026.
Previously, the exemption was due to expire on October 31, 2026. However, with the latest amendment, the exemption will now be valid until December 31, 2026.
The extension is intended to augment the availability of cotton for the domestic textile sector, ensure competitive pricing, support domestic manufacturing, address specialized cotton requirements, and promote value addition across the textile and apparel value chain. This decision aims to provide greater flexibility to textile and apparel manufacturers in meeting their raw material requirements and help ease input cost pressures.
According to the Ministry of Textiles, the move is expected to facilitate uninterrupted availability of raw materials, improve operational flexibility for the textile industry, and promote greater value addition across the cotton-based textile and apparel sector. The Ministry of Textiles welcomes this decision by the Ministry of Finance and remains committed to promoting a competitive, resilient, and globally integrated textile sector, advancing value addition and employment generation, and fostering the long-term growth of the entire textile value chain.
Source:
Press Information Bureau
