Keeping in view the raw material requirements of domestic textile industry, Government of India has extended the existing customs duty exemption on cotton imports until 31st December 2026.
The extension has been notified by the Department of Revenue, Ministry of Finance, vide Notification No. 35/2026-Customs dated 30th October 2026. Through this amendment, the existing exemption, which was available until 31st October 2026, has been extended by two months, up to 31st December 2026.
The Government of India remains conscious of the need to balance the requirements of the textile industry with the interests of domestic cotton farmers, while promoting the sustainable and long-term growth of the entire cotton and textile value chain. The decision aims to augment the availability of cotton for the domestic textile sector, ensure the availability of cotton at competitive prices, support domestic manufacturing, address specialised cotton requirements and support value addition across the textile and apparel value chain.
The measure is expected to provide greater flexibility to textile and apparel manufacturers in meeting their raw material requirements, help ease input cost pressures, support Micro, Small and Medium Enterprises (MSMEs), and strengthen the competitiveness of Indian textiles in domestic and international markets.
The extension is expected to facilitate uninterrupted availability of raw materials, improve operational flexibility for the textile industry and promote greater value addition across the cotton-based textile and apparel sector.
The Ministry of Textiles welcomes and appreciates the decision of the Ministry of Finance and remains committed to promoting a competitive, resilient and globally integrated textile sector, advancing value addition and employment generation, and fostering the long-term growth of the entire textile value chain.