Swatch card No. SW-5975 · cut October 10, 2026

Trade & TariffsMill spec card

Indian Apparel Industry Lobbies for Cotton Import Duty Removal

India's apparel industry has formally asked the government to scrap import duties on cotton, arguing the levy raises input costs and weakens export competitiveness against regional rivals.

Fiber
Trade & Tariffs
Count
2 min read
Cut
Weight
379 words

Spec notes

  1. India's apparel industry has formally requested removal of cotton import duties.
  2. The sector says the duty inflates raw material input costs for garment makers and exporters.
  3. No government decision or timeline for the duty change has been announced.
Apparel Industry Seeks Cotton Import Duty Removal - Rediff MoneyWiz
Chip 01 · SW-5975Apparel Industry Seeks Cotton Import Duty Removal - Rediff MoneyWiz — AI-generated

India's apparel industry has formally asked the government to remove import duties on cotton, a move it argues would lower input costs for garment makers and exporters competing against lower-cost sourcing destinations.

The request, reported by Rediff MoneyWiz, comes from an industry that has long complained that duties on imported cotton raise raw material prices for domestic mills and garment factories. The apparel sector's argument rests on a simple cost equation: cotton is the largest single input cost for most knitwear and woven garment producers, and any duty on that input flows directly into factory-gate prices.

What does the duty change mean for sourcing?

For international buyers sourcing from India, a removal of the cotton import duty would matter on two fronts. First, it could narrow the price gap between Indian suppliers and competitors in Bangladesh, Vietnam and other hubs that access raw cotton at world prices. Second, it would give Indian factories more flexibility to import cotton varieties and blends that domestic production does not fully cover, which affects fabric quality options and lead times on certain orders.

The industry's push also reflects the sector's export ambitions. Indian apparel exporters have argued for years that duty-inflated cotton prices undermine their ability to quote competitively on large international programs, where buyers benchmark Indian quotes against regional alternatives on a cents-per-unit basis.

Confirmed ask versus policy outcome

Buyers and sourcing teams should treat this as a lobbying request, not a policy change. The government has not announced any decision on the duty, and there is no confirmed timeline in the report. Past duty adjustments on cotton in India have moved in both directions depending on domestic farmer politics and textile lobby pressure, so vendors may hesitate to re-quote until an official notification appears.

For now, the development signals where Indian suppliers intend to take their cost argument: if the duty goes, expect Indian factories to push renewed price offers on cotton-heavy programs. If it stays, the sector's competitiveness gap on cotton-based apparel persists, and buyers will keep balancing Indian capacity against regional alternatives.

The government's response to the industry's request will determine whether Indian apparel exporters gain the raw material cost relief they are seeking.

via Google News: Apparel & garment industry (Source)

Filed under

Share this article:

More from Priya Raman

Priya Raman

Show full bio

Correspondent covering industry trends and analytics at The Fabric Brief.

159 articles

Also on the board

« Previous article