India lifts cotton import duty through October 2026

By AI, Created 11:21 AM UTC, June 04, 2026, /AGP/ – India has removed its 11% cotton import duty from June 1 through Oct. 31, 2026, giving textile mills and apparel exporters cheaper access to premium raw cotton. The policy is aimed at easing supply chain pressure, improving competitiveness and strengthening India’s position as a global sourcing hub.

Why it matters: - The duty cut lowers raw material costs for India’s textile and apparel industry. - Manufacturers gain access to premium cotton varieties that can support higher-end apparel, home textiles and performance fabrics. - The change is designed to improve supply chain stability at a time when global brands are diversifying sourcing. - International buyers may see more predictable production and fewer disruptions in orders from India.

What happened: - India removed the 11% customs duty on cotton imports from June 1 to Oct. 31, 2026. - The policy applies to raw cotton imports. - The move affects spinning mills, textile producers, garment exporters and international fashion brands sourcing from India.

The details: - Cotton remains the foundation of India’s textile industry. - Indian manufacturers often need specialized cotton varieties to meet the quality standards of global buyers. - The duty exemption lets mills source premium cotton from global markets without the added tax burden. - Easier access to imported cotton gives manufacturers more flexibility in raw material procurement. - The policy supports production continuity across fabrics and garments for export markets. - Access to high-quality cotton is especially important for premium apparel, luxury garments, home textiles and performance fabrics. - The exemption gives manufacturers more options when domestic cotton prices are unstable or supplies tighten. - Spinning mills, fabric manufacturers and garment exporters can use the policy to reduce procurement risk and keep production schedules steadier.

Between the lines: - The policy narrows a cost gap that previously put Indian manufacturers at a disadvantage versus Bangladesh, Vietnam and Sri Lanka. - India’s textile sector also benefits from trade agreements, modern facilities and growing export infrastructure. - The move strengthens India’s pitch to global brands that want resilience, compliance, sustainability and scale in one sourcing destination. - The change supports a more integrated manufacturing model, where yarn spinning, fabric development, garment production and exports stay within one network. - NoName said the shift supports its private-label manufacturing, quality-controlled production, sustainable sourcing and global apparel export work.

What’s next: - Brands sourcing from India are likely to watch whether the duty removal translates into lower input costs and more stable lead times. - Manufacturers may expand sourcing of premium cotton while the exemption is in place. - The policy is set to run through Oct. 31, 2026, unless the government changes course. - Global buyers may further shift orders to India if the policy improves price competitiveness and reliability.

The bottom line: - India’s cotton duty suspension gives its textile industry a near-term cost break and a longer-term competitive boost in global apparel sourcing. - More information - More information - More information - More information