India extends cotton import duty exemption till December 31 to ease textile costs

The Centre has extended the customs duty exemption on cotton imports until December 31, 2026, from the earlier deadline of October 31, 2026, to augment cotton availability for India's textile sector.

The extension is expected to help reduce input costs across the textile and apparel industry, providing relief to manufacturers and consumers while taking into account the interests of domestic farmers, the government said.

The measure is also expected to have a positive impact on the domestic textile industry, particularly small and medium enterprises, by improving the availability of cotton in the market.


The Finance Ministry amended its May 30, 2026, customs notification to extend the exemption by two months. The amendment replaces the October 31, 2026, deadline specified in the earlier notification with December 31, 2026.

The amendment was issued under Section 25(1) of the Customs Act, 1962, read with Section 124 of the Finance Act, 2021.