Govt extends duty-free import of cotton by 3 months, till Dec 31
The Indian textile sector has received a boost with the Central government’s decision to extend the duty-free import of cotton by three months. The extension is valid till December 31, 2025, providing relief to the industry which has been grappling with a shortage of cotton supplies.
The cumulative 11% import duty, comprising 5% Basic Customs Duty, 5% Agriculture Infrastructure and Development Cess, and a 10% Social Welfare Surcharge on both, was earlier waived temporarily from August 19 to September 30. The extension of the duty-free period is expected to support the Indian textile sector, which is a significant contributor to the country’s economy.
The move is seen as a strategic decision by the government to support the domestic textile industry, which is facing challenges due to a shortage of raw materials. The shortage has led to a shortage of cotton yarn, fabric, and other textile products, impacting the production and export of textiles.
The extension of the duty-free import of cotton is expected to increase the availability of raw materials for the textile industry, enabling it to meet the domestic demand and also enhance its exports. The government’s decision is likely to benefit the textile industry, particularly the small-scale and medium-scale enterprises (SMEs) that are heavily dependent on imports of cotton.
The textile industry is one of the largest employment generators in the country, providing employment to lakhs of people. The industry is also a significant contributor to the country’s exports, with a majority of the cotton and textile products being exported to countries such as the United States, China, and Europe.
The government’s decision to extend the duty-free import of cotton is seen as a step towards promoting the growth and development of the textile industry. The industry has been facing challenges due to a shortage of raw materials, including cotton, and the government’s decision is expected to alleviate these challenges and promote the growth of the industry.
The extension of the duty-free import of cotton is also expected to benefit the farmers who are the primary producers of cotton. The government’s decision is likely to increase the demand for cotton, leading to higher prices and better returns for the farmers.
The government’s decision to extend the duty-free import of cotton is a significant move towards promoting the growth and development of the textile industry. The industry is a significant contributor to the country’s economy and the government’s decision is expected to support its growth and development.
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