Cotton Import Duty: While on one hand the public has to face the brunt of inflation across the country, on the other hand the government has given some relief to the textile industry. The Government of India has recently removed the tax on import of cotton. With this decision, the textile industry has become silver.

five months relief
Actually, the government has given this relief to the textile industry from June 1, 2026 to October 30, 2026. The government has removed all custom duties on cotton import. After this decision, there was a strong rise in the shares of many textile companies on Monday. Shares of Vardhman Textiles, Gokaldas Exports, Arvind, Welspun Living, Trident, KPR Mills and Raymond Lifestyle have increased by 2% to 7%. Whereas the shares of Indo Count Industries have increased the most by about 11%.

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Why was the decision taken?
The government believes that this will provide cheaper and better quality cotton to the textile and garment industry. This will reduce the costs of companies and they will be able to compete better in foreign markets.

Textile value chain will benefit
AEPC (Apparel Export Promotion Council) Chairman A Sakthival said that MSME companies were troubled by the rising prices of cotton and yarn in recent months. With the removal of duty, domestic cotton prices will be under some control. He has also appealed to the spinning mills to pass on the benefits of lower costs to the customers in the form of reduction in yarn prices.

Whereas Confederation of Indian Textile Industry (CITI) said that the decision to remove 11% import duty is a big relief for the textile and garment industry. This will help India achieve the textile export target of $100 billion by 2030.

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Industries will benefit
This decision of the government will not only benefit the textile industry but also the common people. This will increase the availability of cotton. The cost of making yarn and cloth will also reduce. Small and medium industries (MSME) will get relief. Textile exporters will get help in getting foreign orders. There may be less pressure on the prices of cotton and yarn in the domestic market.