Eliminate 11% duty on American raw cotton imports by India, urge US lawmakers

The geopolitical framework of the textile industry shifted as senior US lawmakers formally pressured the Trump administration to eliminate India’s 11 per cent import duty on American raw cotton. Led by Jody Arrington Chairman, House Budget, a coalition of 12 congressmen emphasized this is a critical moment to integrate US high-quality fiber with India’s massive spinning capacity. This move follows the February 2026 India-US trade deal, which successfully slashed reciprocal tariffs on Indian apparel from 50 per cent to 18 per cent, effectively restoring India’s price parity against rivals Bangladesh and Vietnam.

For India the elimination of cotton duty is an opportunity to address a projected domestic production deficit. With India’s MY 2025/26 cotton output estimated at a reduced 23.8 million bales due to erratic monsoons, mill consumption -forecast at 25.2 million bales requires reliable external sourcing. Integrating US cotton allows Indian mills to produce high-tenacity yarns for the premium US retail market without the 11 per cent cost penalty, noted a senior industry analyst. This synergy is vital as Indian garment exports to the US declined by 31.4 per cent in late 2025 under punitive duties. A permanent tariff removal would stabilize input costs, securing India’s march toward its $100 billion export target by 2030 while providing a market-driven lifeline to American farmers who export 85 per cent of their production.