Zero duty on cotton imports in India till 30th Sept 2025

Zero duty on cotton imports in India till 30th Sept 2025   

Recently Indian governments announced its decision through Press Information Bureau Portal that there would be Zero customs duty on imports of raw cotton with effect from 19th Aug 2025 till 30th Aug 2025.

This includes removal of earlier charges: -

• 5% of BCD (Basic Customs duty)

• 5% on AIDC (Agriculture Infrastructure and Development Cess)

• 10% on Social Welfare surcharge or both

There was total 11% duty on raw cotton imports.

These changes have been done as a response to the ongoing global trade war, tariff imposed by USA for 50% on imports of Indian goods and it will impact as below

• Ease out the raw cotton availability in Indian market

• Reduce the price and reduce the chance of inflation for cotton products

• Since the production cost will be less it would support for exports at a Cheaper price

• Protect small manufacturers who a most prone to price rise/trade war

This action was taken by India Union Minister of Textiles - Giriraj Singh and was an immediate requirement of the industry.