The Government of India has extended the existing customs duty exemption on cotton imports by two months, from 31 October to 31 December 2026, citing the raw material requirements of the domestic textile industry. The extension was notified by the Department of Revenue, Ministry of Finance, through Notification No. 35/2026-Customs dated 30 October 2026.
The government said it remains conscious of the need to balance the requirements of the textile industry with the interests of domestic cotton farmers, while promoting the sustainable and long-term growth of the entire cotton and textile value chain. The decision is intended to augment the availability of cotton for the domestic textile sector, ensure its availability at competitive prices, support domestic manufacturing, address specialized cotton requirements and support value addition across the textile and apparel value chain.
According to the government, the measure is expected to give textile and apparel manufacturers greater flexibility in meeting their raw material requirements, help ease input cost pressures, and support Micro, Small and Medium Enterprises (MSMEs). It is also expected to strengthen the competitiveness of Indian textiles in domestic and international markets.
The extension is further 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 welcomed the decision of the Ministry of Finance and said it 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.
