New Delhi: The Centre extended the import exemption of customs duty on cotton imports by two months until December 31, 2026 to help boost raw material availability in the country and boost India’s textile and apparel sector.
The current custom duty exemption was set to come to an end on October 31. Extending the exemption will enable textile manufacturers to meet specific cotton needs, the Ministry of Textiles said.
This will provide textile and apparel manufacturers more flexibility in sourcing raw materials, relieve input pressures and benefit Micro, Small and Medium Enterprises (MSMEs). This will also make Indian textiles more competitive.
This will aid uninterrupted supply of raw materials and provide flexibility to the industry. It is also expected to boost value addition in the cotton textile and apparel sector, the ministry said.
India’s textile exports have been seeing growth recently. Textile exports rose by 16.1 percent year-on-year to Rs 29,776 crore in August 2026.
This brought cumulative exports to Rs 1.43 lakh crore between April to August 2026, showing growth of 10.3 percent compared to last year.
Exports of cotton yarn, fabrics, made-ups and handloom items rose by 24.1 percent in August. Exports of manmade yarn, fabrics and made-ups rose by 19.9 percent.
“The Ministry of Textiles is committed to creating a competitive and robust textile industry. It focuses on boosting value addition, employment generation and sustainability of the textile value chain,” the ministry said.
A key development for the sector has been the successful negotiations of the India European Union Free Trade Agreement in January 2026.
The deal provides preferential market access to India on 96.8 percent of tariff lines meaning 99.5 percent of India’s exports. Approximately 90.7 percent of exports by trade value will be duty free.