The Government of India has extended the exemption of import duty on cotton to support the domestic textile and garment industry. This move is aimed at stabilizing raw material availability and controlling price volatility in the textile value chain.
Key Highlights
Extension of Exemption: The government has extended the zero import duty on cotton beyond the earlier deadline to ensure steady supply.
Reason: Rising international cotton prices and domestic shortages were leading to increased production costs for India’s textile and apparel sector.
Impact on Industry:
Helps textile mills and garment manufacturers get raw cotton at lower costs.
Provides relief to small and medium enterprises (SMEs) dependent on cotton yarn.
Aims to make Indian exports competitive in the global market.
Farmers’ Concerns: While textile manufacturers benefit, cotton farmers fear a possible dip in domestic cotton prices due to increased imports.
Importance for UPSC
Economy: Links to agriculture, textile sector, and trade policy.
Government Policy: Reflects balancing of farmer interests vs. industry needs.
Schemes/Initiatives: Supports Atmanirbhar Bharat in textiles by ensuring stability in the value chain.
Possible UPSC Questions
Discuss the impact of cotton import duty exemption on India’s textile industry and farmers.
How does cotton availability affect India’s export competitiveness in textiles?
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