The continuation should help drop production expenses throughout the garment industry by guaranteeing stronger cotton supply locally.
India has prolonged the customs duty waiver on cotton shipments through December 31, 2026, shifting from the prior October 31 deadline, to boost raw material access and lower expenses for the nation’s apparel sector.
The finance department released an order on October 30 tweaking its May 30, 2026, tax directive to prolong the relief. This update was enacted via Section 25(1) of the Customs Act alongside Section 124 of the Finance Act.
The continuation should help drop production expenses throughout the garment industry by guaranteeing stronger cotton supply locally. It also aims to assist makers and buyers while protecting the welfare of local cotton growers, officials noted.
Smaller businesses specifically stand to gain from enhanced access to this vital supply.
Cotton serves as a vital resource for India’s garment business, where its supply and rates shape overall expenses across the supply chain. Cheaper input costs might additionally offer respite to buyers based on how much savings firms transfer downward.