The Confederation of Indian Textile Industry (CITI) heartily welcomes the temporary extension of the relief on cotton import duty for an additional two months till December 31, 2026, as it would strengthen the international competitiveness of the Indian textile and apparel sector, targeting $100 billion in exports by 2030.
“This measure was the urgent need of the hour, with the Indian textile and apparel sector continuing to confront persistent global headwinds and rising competition, with the challenge exacerbated by the domestic supply of cotton being unable to keep pace with the industry’s requirements.
“The extension of the cotton import duty waiver till December 31, 2026, will ensure that Indian textile and apparel companies can keep their input costs under control and not be rendered globally uncompetitive. The move will provide near-term predictability for the value chain, enabling companies to plan production cycles and honour export contracts better,” CITI Chairman Shri Ashwin Chandran said.
“CITI would like to convey its sincere gratitude to the Hon’ble Prime Minister, the Union Ministers of Finance, Agriculture & Farmers Welfare, Textiles and Commerce, and all concerned officials for this relief extended to the Indian textile and apparel sector.”
The CITI Chairman said imports are necessary to bridge the demand-supply gap arising from reduced cotton production in India. The estimated gap between domestic cotton supply and industrial demand is likely to widen further due to the El Niño effect and growing industrial requirements because of Free Trade Agreements (FTAs).
Cotton imports are largely driven by quality and specifications, catering to specialised requirements and back-to-back export orders. They do not displace domestic cotton. In May 2026, a joint study by Gherzi and the International Cotton Advisory Committee (ICAC) said Indian industry needs a cotton policy environment that will enable it to compete effectively with its Asian peers, which have duty-free access to international cotton.
Although India is among the world’s largest cotton growers, its productivity trails that of several peer countries, affecting export competitiveness. The productivity challenge is especially significant because cotton remains the primary raw material for most of India’s textile exports.
In May 2026, the Union Cabinet approved the five-year Mission for Cotton Productivity, running from 2026–27 to 2030–31, to boost farm productivity, enhance sustainability, and promote Extra Long Staple (ELS) cotton varieties. However, its impact would take time to manifest.
India’s textile and apparel sector is the country’s second-biggest employer and contributes significantly to the national GDP and overall exports. India’s textile and apparel exports grew by 17.51% year-on-year in September 2026, measured in US dollar terms. However, year-on-year growth for April–September 2026 was a mere 2.38%, as apparel exports declined compared with the same period in 2025.
