In a strategic move to support India’s thriving textile industry and to ensure uninterrupted access to raw materials, the Central Government has extended the import duty exemption on cotton (HS 5201) until 31st December 2025. Initially introduced for a brief period from 19th August to 30th September 2025, the exemption has now been prolonged to assist exporters and bolster the country’s global competitiveness in textiles.
This timely announcement aligns with the spirit of “Azadi Ka Amrit Mahotsav”, a nation-wide initiative celebrating 75 years of India’s independence. As part of this celebration, the government continues to implement reforms and policy interventions that aim to empower key sectors, including agriculture and industry, thereby driving inclusive growth and economic self-reliance.
A Boost for the Textile Sector
India’s textile sector is a significant contributor to the country’s GDP, employment, and exports. However, fluctuations in cotton availability and prices—both domestically and globally—often pose challenges for manufacturers and exporters. The extension of the import duty exemption seeks to alleviate these concerns by making imported cotton more accessible and affordable.
By removing the financial burden of import duties, the government ensures that textile mills and manufacturers can source quality cotton at competitive rates. This will be particularly beneficial in a year where domestic production may be affected by variable climatic conditions or global supply chain disruptions.
Supporting Exporters and MSMEs
The extension of this exemption not only benefits large textile players but is also a vital lifeline for micro, small, and medium enterprises (MSMEs) that form the backbone of India’s textile exports. With global demand for Indian textiles rising steadily, uninterrupted access to raw cotton will enable these businesses to meet deadlines, fulfill contracts, and remain price-competitive in international markets.
Moreover, this policy decision reinforces India’s commitment to its trade partners and international buyers, ensuring that the country remains a reliable supplier in the global textile value chain.
Aligning with the Vision of “Azadi Ka Amrit Mahotsav”
The decision is emblematic of the government’s proactive and responsive governance model, reflecting the values of “Azadi Ka Amrit Mahotsav”—a celebration not just of past achievements but of future aspirations. By addressing real-time challenges faced by industries, the government is paving the way for a self-reliant India (Aatmanirbhar Bharat) that supports its producers, promotes exports, and protects livelihoods.
What’s Next?
A formal notification detailing the extension of the import duty exemption will follow shortly, as per the Ministry of Finance. Stakeholders in the textile sector are encouraged to stay updated and take advantage of this policy window to strengthen their sourcing strategies and production planning.
As India marches forward on its developmental journey, such targeted interventions are crucial in building a resilient and dynamic economy—one that honors its heritage while embracing innovation and progress.