The Government of India has increased the duty free import of cotton by 3 months to 31 December 2025. The government has taken this decision after the tariff imposed by the US. The US has imposed 50% tariff on imported clothes from India. Due to this, the cost of cost and export competition on the Indian textile and textile industry has increased.

The US has imposed additional fees on products coming from India. The reason for this is being told by India to purchase Russian oil and refuse to open the market for American products. The Government of India believes that the domestic industry will get raw materials at a low cost from the duty-free cotton import. With this, the impact of American tariffs will be balanced to some extent.

India’s textile industry
According to the PIB report, India’s textile industry is about $ 350 billion and it is the second largest employment sector after agriculture. In this, more than 4.5 crore people are directly connected to this sector. In 2023-24, India exported a cloth worth $ 34.4 billion, but the US tariff could get a major setback. However, duty-free cotton imports will reduce the cost of textile mills. Thread and clothes will become cheap. India will be able to maintain competition in the global market.

Land-political and economic signs of India’s decision
This step of India is not only economic, but also strategic. This shows that India is taking steps to protect its industry despite American pressure. Also, there is a message that India is bending towards new export markets (Britain, Japan, Europe, Asia). In relation to this, the government has decided to export textile products to 40 countries of the world. For this, India has prepared separate plans for each country.

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