The government’s temporary custom duty exemption on cotton is expected to ease cost pressures on textile manufacturers. Industry officials and sector experts, however, argue that the measure reveals deeper challanges confronting India’s $190 billion textile and apparel industry. They point to persistent challenges in productivity, quality, and global competitiveness that require structural reforms instead of temporary tariff interventions.
Notably, the government on May 30, 2026, announced a temporary exemption on customs duties on cotton imports between June 1 and October 31, 2026. The measure aims to ensure adequate cotton availability for the textile industry, support MSMEs, moderate input costs, and strengthen the competitiveness of Indian textiles while safeguarding farmers’ interests.
