The government’s decision to remove the 11% import duty on cotton until September 30 has been welcomed by the textile industry. This move is expected to improve the cost competitiveness of the textile value chain and benefit yarn and fabric manufacturers. The article notes that cotton-linked stocks, such as Vardhman Textiles and Ambika Cotton Mills, saw a positive market response following the announcement.
The government’s measure is expected to help exporters sustain India’s $100 billion textile export ambition by 2030. The relief is considered a crucial step in a difficult time for the textile and garment industry, which is already grappling with the impact of the 50% U.S. tariffs.