NITMA Hails Cotton Duty Waiver as Major Boost for Textile Industry
June 1, 2026
ETT News / Chandigarh
The Northern India Textile Mills’ Association (NITMA) has welcomed the Central Government’s decision to temporarily remove the 11% import duty on raw cotton from June 1 to October 31, 2026, stating that the move will enhance the global competitiveness of India’s textile and apparel industry and provide relief to manufacturers facing rising input costs.
The association said the duty waiver comes at a crucial time when textile and garment manufacturers are grappling with raw material shortages and intense competition from international markets. NITMA believes the decision will help stabilize the supply chain and reduce production costs for spinning mills, fabric manufacturers, and garment exporters across the country.
NITMA President Sidharth Khanna said the import duty had created a significant cost disadvantage for Indian textile producers, particularly when competing against major Asian textile-exporting nations that enjoy duty-free access to global cotton markets. He thanked Prime Minister Narendra Modi and the Union Ministries of Finance, Textiles, Commerce, and Agriculture & Farmers Welfare for introducing the temporary relief measure.
Khanna said lower cotton prices would enable exporters to take better advantage of upcoming free trade agreements, including the proposed India-UK Free Trade Agreement. He added that the policy would also help manufacturers import specialized and quality-specific cotton needed to fulfill export orders while addressing domestic supply gaps.
The association maintained that the decision would not harm local cotton growers and instead support the long-term interests of farmers by strengthening the textile value chain. According to NITMA, a thriving textile industry creates sustained demand for cotton and aligns with the government’s vision of linking agriculture and manufacturing for greater economic growth.
Senior Vice President Munish Avasthi described the duty removal as a strategic intervention that would support the entire textile value chain during a period of raw material stress. He said the measure would help India's textile sector, one of the country's largest employers, maintain its contribution to national GDP and exports.
NITMA also expressed confidence that the duty waiver would help reverse the recent decline in textile exports and provide momentum toward achieving India's target of $100 billion in textile and apparel exports by 2030. The association reiterated its commitment to working with policymakers to strengthen the competitiveness and resilience of the domestic textile industry.
NITMA Cotton Import Duty Textile Industry India Raw Cotton Imports Textile Exports MSME Textile Sector Sidharth Khanna Munish Avasthi Cotton Duty Waiver Indian Textile Competitiveness UK FTA Textile Export Target 2030
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