The Government of India has extended the customs duty exemption on cotton imports by two months until December 31, 2026, to support the raw material requirements of the domestic textile industry.
The Department of Revenue, Ministry of Finance, announced the extension through Notification No. 35/2026-Customs dated October 30, 2026. The existing exemption, which was due to expire on October 31, has now been extended until the end of December.
Move to ease input cost pressures
The decision is aimed at augmenting cotton availability for domestic textile manufacturers and ensuring access to the raw material at competitive prices. It is also expected to address specialised cotton requirements and support value addition across the textile and apparel value chain.
The government said the measure seeks to balance the requirements of the textile industry with the interests of domestic cotton farmers while promoting sustainable, long-term growth across the cotton and textile sectors.
MSMEs to benefit from extension
The extension is expected to provide greater flexibility to textile and apparel manufacturers in meeting their raw material requirements and help ease input cost pressures.
It is also expected to support Micro, Small and Medium Enterprises (MSMEs), facilitate uninterrupted raw material availability and strengthen the competitiveness of Indian textiles in domestic and international markets.
Ministry of Textiles welcomes decision
The Ministry of Textiles welcomed the Finance Ministry’s decision, saying it would support a competitive, resilient and globally integrated textile sector.
The measure is expected to improve operational flexibility, promote value addition and support employment generation across the cotton-based textile and apparel industry.