India's second-largest employer, the textile and apparel sector faces a fierce fight for global competitiveness, leading the Confederation of Indian Textile Industry (CITI) to urgently demand the permanent removal of the 11 per cent import duty on cotton. This plea comes as the sector reels from devastating external trade barriers, most notably the 50 per cent tariff imposed by the US - India’s largest export destination - which has been in effect since August 27, 2025. This tariff wall, compounded by a similar new 50 per cent duty from Mexico, contributed to a steep decline of nearly 12.9 per cent in textile and apparel exports in October 2025 compared to the previous year. The industry requires cost parity to offset these punitive duties.
Bridging the price gap for global orders
The necessity for duty-free raw material is magnified by two crucial domestic factors: a projected decline in cotton output for the current season (2025-26) and persistent concerns over fiber quality, often requiring mills to import high-grade, contamination-free cotton (about 6 per cent of total production, or 2 million bales annually) to meet global buyer specifications. Ashwin Chandran, Chairman, CITI, stressed, removing the duty would reduce the divergence between domestic and global prices and restore the competitiveness of India's spinning and textile industries. While the government temporarily exempted the duty until December 31, 2025, CITI argues, a permanent waiver is essential to provide cost stability, prevent job losses, and allow the MSP mechanism to function without disrupting downstream market costs.
An apex industry body representing the entire organized textile value chain in India, CITI is mainly involved in advocating for policies that enhance the sector’s global competitiveness and domestic growth. The Indian textile industry contributes approximately 2 per cent0 of the country's GDP and is critical to employment, with the goal of reaching $100 billion in exports by 2030. CITI is currently focused on leveraging government schemes like the Production Linked Incentive (PLI) and the PM MITRA Parks to modernize infrastructure and diversify the product base, aiming to stabilize the sector amid international trade volatility.
