India extends cotton imports duty free window to December 31, 2025

The central government on Thursday extended a duty free window for cotton imports until December 31, 2025, saying the move will help India’s textile exporters weather steep new tariffs imposed by the United States and stabilise raw material costs across the sector. The Finance Ministry said the exemption, which applies to cotton under HS 5201, will remain in force through the end of the year after an initial temporary waiver that began on August 19 and was due to lapse on September 30.

The extended waiver removes both the 5 percent basic customs duty and the 5 percent agriculture infrastructure and development cess, along with the social welfare surcharge that made the cumulative levy roughly 11 percent. The ministry said the measure is intended to lower input costs for yarn, fabric, garments and made ups, support export competitiveness and protect small and medium enterprises as a 50 percent U.S. tariff on a wide range of Indian goods took effect on August 27.

Officials and industry groups said the extra three months will allow manufacturers to place longer term import contracts rather than rely only on cotton already in transit. Atul Ganatra, president of the Cotton...