The Indian government has extended the customs duty exemption on cotton imports by two months, until December 31, 2026, to improve domestic supplies and reduce input costs for the textile and apparel industry.

The extension follows the five-month exemption introduced in May 2026, which was scheduled to expire on October 31.

The decision is expected to improve cotton availability in the domestic market and provide cost relief to textile manufacturers, particularly small and medium-sized enterprises (SMEs). The move aims to support the textile industry's competitiveness amid fluctuating raw material prices.