The Indian government has announced an extension of the cotton import duty exemption until December 31, 2025, offering relief to the country’s textile and apparel industry. The decision comes at a time when the sector is facing serious challenges due to new U.S. tariffs and global trade uncertainties. By keeping cotton imports duty-free, the government aims to reduce raw material costs for Indian mills and exporters, who rely heavily on cotton to remain competitive in global markets. Industry experts say the move will help textile companies manage rising input costs, protect jobs, and maintain production levels amid weak international demand. The Southern Indian Mills Association (SIMA) welcomed the extension, noting that nearly 70% of India’s textile and clothing exports to the U.S. are under pressure because of the 50% tariffs recently imposed by the Trump administration. With export bookings slowing, the exemption is expected to provide some breathing space for the industry. Officials also encouraged the sector to diversify into new markets through free trade agreements with countries such as Japan, Australia, and the U.K.
