NEW DELHI – India has extended its customs-duty exemption on cotton imports through December 31, giving textile manufacturers two more months to bring in the raw material under the existing relief.
The Ministry of Textiles announced the extension Saturday, October 31, the day the exemption had been due to expire. It said the Finance Ministry’s Department of Revenue made the change through a notification dated October 30.
The decision extends an existing exemption, rather than introducing a permanent duty-free regime. The new end date is December 31, 2026.
The government said it acted in view of the domestic textile industry’s raw-material needs. It expects the extension to improve cotton availability, help manufacturers obtain supplies at competitive prices and address requirements for specialized cotton.
For textile and apparel businesses, the extra time is intended to provide more flexibility in sourcing materials and help ease input-cost pressures, according to the ministry. It said small and medium-sized businesses are among the intended beneficiaries.
The ministry also pointed to the need to balance manufacturers’ requirements with the interests of domestic cotton farmers. Its announcement describes the measure as supporting the wider cotton and textile value chain.
Those are the government’s stated aims, not measured results from the two-month extension. The release does not quantify an expected increase in imports, a reduction in retail clothing prices or a budget cost.
The change was made through Notification No. 35/2026-Customs, the ministry said. Its Saturday statement confirms that the deadline has moved from October 31 to December 31.
The full announcement is available in the Ministry of Textiles release published by India’s Press Information Bureau.
JBizNews Business Desk | New Delhi
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