Industry News
India Suspends Cotton Import Duty in Signal to U.S., Relief for Garment Industry
India has suspended the 11% import duty on cotton until September 30, 2025, to support the domestic textile industry and address the challenges posed by rising costs and global competition.
This decision is seen as a goodwill gesture towards the United States amid trade tensions and aims to ease pressure on India's garment sector, which is one of the country's largest employment generators. The suspension is expected to benefit U.S. cotton growers and provide relief to India's apparel sector, which faces tariffs of nearly 60% on shipments to the United States. The move positions India as a responsive trade partner, potentially opening doors for future negotiations on tariff reductions and trade facilitation.
Cotton imports into India more than doubled to $1.2 billion in the 2024/25 fiscal year to March, from $579 million a year earlier, led by $258 million from Australia, $234 million from the United States, $181 million from Brazil, and $116 million from Egypt.
The sharp rise in U.S. tariffs comes just as India was emerging as a stronger alternative for American garment buyers, with Bangladesh facing political uncertainty and companies seeking to diversify supply chains beyond China.Industry bodies such as the Confederation of Indian Textile Industry (CITI) urged the Government to scrap the cotton import duty to help make the sector more competitive.
The India Textiles and Apparel Industry plays a crucial role in India’s economic growth, boosting exports, creating jobs, empowering women, and showcasing India’s rich heritage and culture. As per National Account Statistics, 2025, the average share of the textile and apparel industry is approximately 2% of the country’s GDP and 11% of manufacturing GVA during the last three years. The sector contributes direct employment of more than 45 million people.
.jpg)
India’s textile and apparel exports rose by 3.87 percent to $12.182 billion during the first four months of the current fiscal 2025–26 (FY26). Of the total, apparel exports increased by 7.87 percent to $5.531 billion, while textile exports rose by 0.77 percent to $6.651 billion in April–July 2025.
According to an analysis by the Confederation of Indian Textile Industry (CITI), India maintained mild growth in textile and apparel exports during the period, compared to $11.728 billion during the first four months of the previous fiscal year 2024–25. Apparel exports rose by 7.87 per cent from $5.127 billion during the corresponding period, while textile exports inched up from $6.600 billion.
)