India has suspended import duties on raw cotton until September 2025, a move designed to stabilize domestic cotton prices and support the country’s crucial textile sector. This decision comes as a relief for textile manufacturers, who have faced high input costs due to volatile cotton prices in recent months.
Impact on Indian Textile Industry
The waiver is expected to lower production costs for Indian textile and garment companies, making them more competitive in international markets. Experts believe this measure will help stabilize cotton prices domestically, ensuring steady supply for manufacturers. Following the announcement, stocks in the textile sector rallied sharply, reflecting increased investor confidence in the industry.
Government’s Strategy to Boost Exports
The Indian government aims to boost textile exports and protect jobs in the sector, which employs millions. By removing import duties, the government is addressing supply shortages and supporting economic growth. This policy will remain in effect until September 2025, providing long-term relief and stability for the industry.
Sources:
FashionUnited: India Suspends Raw Cotton Import Duties Until September 2025
