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Cotton duty cuts a boon for industry
Financial Express Lucknow
|August 22, 2025
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.
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.
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