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India Removes Cotton Import Duty to Help Garment Industry

The Indian government has removed the 11% import duty on raw cotton from August 19 to September 30. This decision gives temporary relief to the textile and garment industry, which is struggling with high costs and tough global competition. Industry groups like CITI (Confederation of Indian Textile Industry) had been asking for this change to help Indian manufacturers stay competitive.

This move comes at a time when Indian garment exports to the US are facing a steep 50% tariff, much higher than what countries like Bangladesh and Vietnam pay. Because of this, many Indian exporters were losing orders or selling at a loss. The duty cut will reduce raw material costs, making it easier for Indian companies to produce and export garments.

Experts say this step will help stabilize cotton prices, boost production, and support small and medium businesses in the textile chain. However, the relief is only for 42 days, and many in the industry hope the government will extend it. India aims to reach $100 billion in textile exports by 2030, and this move is seen as a small but important push in that direction.

  10:58 AM, Aug 20

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