Cotton Import Duty Raises Cost Pressures on Textile Industry, Study Flags Competitiveness Concerns
New Delhi: A new industry study has highlighted that India’s current cotton import duty structure could be affecting the global competitiveness of the country’s textile and apparel sector.
The report points out that higher input costs for raw cotton are adding pressure on manufacturers, especially exporters who operate in highly competitive international markets where pricing plays a crucial role in demand.
While the policy is designed to support domestic cotton farmers and ensure stable returns for the agriculture sector, the study notes that it may also be increasing production costs for textile companies across the value chain.
Industry observers say the textile sector, one of India’s largest employment-generating industries, depends on cost-efficient raw material sourcing to maintain export growth and compete with global peers.
The study further observes that competing textile-producing countries often benefit from more flexible import mechanisms, allowing them to better manage raw material costs and respond quickly to shifting global demand.
Experts suggest that India faces a policy balancing challenge—protecting farmer incomes while also ensuring that manufacturing and exports remain globally competitive.
The report calls for a more calibrated and balanced approach to cotton trade policy, aimed at supporting both agricultural stability and industrial growth.
Overall, the findings underline the need for a policy framework that strengthens India’s textile ecosystem while sustaining its position in the global apparel and fabric export market.
