CITI Welcomes Temporary Suspension of Cotton Import Duty to Boost Textile Sector
CITI hails temporary removal of 11% cotton import duty by Centre
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The Confederation of Indian Textile Industry (CITI) has praised the Indian government's decision to temporarily suspend the 11% import duty on cotton from June 1 to October 31, 2026. This measure aims to enhance the competitiveness of the MSME-dominated textile and apparel sector, crucial for achieving $100 billion in exports by 2030.
- 01The temporary suspension of the 11% cotton import duty is effective from June 1 to October 31, 2026.
- 02CITI Chairman Ashwin Chandran emphasized that the duty was a significant barrier to competitiveness against Asian rivals with duty-free access.
- 03The textile and apparel sector, heavily reliant on cotton, is vital for India's economy, being the second-largest employer.
- 04CITI highlighted that the duty relief will help exporters capitalize on upcoming Free Trade Agreements, particularly with the UK.
- 05The demand for cotton imports is driven by a gap in domestic production, ensuring that the interests of farmers are not compromised.
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The Confederation of Indian Textile Industry (CITI) has expressed strong support for the Indian government's decision to temporarily remove the 11% import duty on cotton, effective from June 1 to October 31, 2026. This initiative is expected to bolster the competitiveness of India's textile and apparel sector, which is primarily dominated by micro, small, and medium enterprises (MSMEs). CITI Chairman Ashwin Chandran noted that the reinstated duty had previously hindered exporters, especially as major Asian competitors enjoy duty-free access to cotton. The textile sector, which is crucial for India's economy and employment, has faced challenges, including a 2.2% decline in exports in FY26. The duty relief is anticipated to enable exporters to leverage opportunities from upcoming Free Trade Agreements, particularly with the UK, and address the demand-supply gap in domestic cotton production. CITI reassured that this move would not negatively impact farmers, as a thriving textile industry is essential for their success.
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The removal of the cotton import duty is expected to enhance the competitiveness of the textile sector, potentially increasing exports and benefiting MSMEs.
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