India removes 11% raw cotton import duty June to October
India's textile sector just got some relief. The government has scrapped the 11% import duty on raw cotton from June to October.
This move, announced by the Finance Ministry, is meant to help manufacturers tackle high costs and cotton shortages by making it easier (and cheaper) to buy quality cotton from abroad.
Exemption expected to help 8cr workers
Domestic cotton production isn't keeping up with demand. India needs 330-350 lakh bales a year but only produces about 290 lakh, leaving a big gap.
Since cotton makes up nearly 25-30% of garment/home textiles manufacturing cost, this exemption is expected to boost competitiveness, support exports, and benefit around eight crore workers (especially in rural areas).
Industry leaders say it's a much-needed step while India works on growing more of its own cotton.