India blinks, nixes cotton import duty in US trade thaw

In a move seen as breaking the ice in strained trade relations with the US, the Indian government late Monday removed the customs duty and agriculture cess on cotton imports, a step that industry observers believe could ease tensions and create fresh room for engagement.

- Dhirendra Kumar

In a notification, the ministry of finance said all imports under heading 5201—covering raw cotton—will be exempt from duties between 19 August and 30 September. The decision is expected to directly benefit American exporters, who have been pressing for easier market access in India after Washington increased tariffs on Indian products earlier this year.