India Opens Duty-Free Cotton Imports

India has suspended import duties on cotton from today, August 19 to September 30 in response to industry calls to support the garment sector’s competitiveness. Although the country is the world’s third-largest exporter of raw cotton—behind Brazil and the U.S., with USD 6.78 billion in export value in FY24—local textile makers often depend on imports of specific cotton varieties. The duty cut offers relief against a steep 50% US tariff on Indian apparel, which combines a 25% existing levy with an additional 25% penalty tied to India’s Russian oil purchases. Cotton imports had previously carried an 11% duty. Industry officials said the duty-free window could be extended if pressures persist. Meanwhile, Reuters reported that some exporters are considering shifting part of their production offshore to cushion the impact of higher US tariffs.