FX.co ★ India Extends Cotton Import Duty Exemption Through Year-End

India has prolonged its exemption on cotton import duties until December 31, a measure designed to alleviate pressures on the domestic garment industry, which has faced challenges due to a 50% tariff on exports to the U.S. Initially announced on August 18 with an expiration date of September 30, this extension is intended to "enhance the availability of cotton for the Indian textile sector," according to a release by the Press India Bureau. Although India ranks as the world's third-largest exporter of raw cotton, following Brazil and the U.S., and recorded an export value of USD 6.78 billion in FY24, its textile producers still depend on importing certain cotton varieties that are not widely available within the country. This initiative is anticipated to alleviate input cost burdens and bolster production during a period marked by global trade challenges.