India’s government is examining the possible removal or reduction of the current 11% import duty on cotton, according to an official, as policymakers weigh measures to support domestic textile manufacturers facing high raw material costs.
The proposed review comes amid concerns from spinning mills and apparel producers that elevated cotton prices are squeezing margins and affecting export competitiveness. Lower import duties could help increase supply availability, stabilize prices, and ease pressure on downstream industries.
India’s textile sector, one of the country’s largest employers and export earners, has been seeking policy intervention to improve access to competitively priced cotton. Industry bodies argue that cheaper imports would help mills operate at higher capacity and strengthen global order fulfillment.
However, any duty reduction could face resistance from domestic cotton growers who benefit from firmer local prices. Officials are expected to balance the interests of farmers, industry, and trade performance before making a final decision. The move is being closely watched by stakeholders across the cotton and textile value chain.