Cotton duty cuts a boon for industry

The Government had on Monday agreed to a long-standing demand of the textile industry to eliminate the 11% duty on cotton imports, in a bid to soften the impact of high US tariffs on the labour-intensive sector, which is expected to take the hardest hit from the 50 per cent US levy.

- RAVI DUTTA MISHRA

However, the calibrated relief measure to eliminate the duty until September 30 could also help ease trade tensions with the US, as Washington is the second-largest cotton exporter to India and has been pushing for broader access to the Indian market during negotiations for a trade deal.

On August 7 the industry had suggested a duty cut on US cotton as one of the measures to sweeten the trade deal.