India lifts import duty on cotton, boosts export prospects.

Starting February 20, 2024, the Indian government has eliminated import duties on cotton under HS Code 52010025, per CBIC Notification No.10/2024-Customs. Additionally, Notification No.11/2024-Customs, also issued on February 19, 2024, exempts Agriculture Infrastructure and Development Cess (AIDC) on goods within this tariff category. These moves aim to stimulate export competitiveness, particularly in value-added cotton products.

The decision follows persistent appeals from industry stakeholders, notably the Council, urging the removal of the 11 per cent import duty imposed since November 2022. The Council expresses gratitude to the Government for this decision, emphasizing its potential to enhance the competitiveness of value-added exports. This policy revision is anticipated to facilitate a significant surge in export volumes.

The removal of import duties and AIDC on cotton signifies a strategic step towards bolstering India's position in the global cotton market. With reduced trade barriers, manufacturers are expected to offer more competitive prices, thereby increasing demand for Indian cotton products internationally. This move aligns with the government's broader agenda to promote export-led growth and strengthen the country's position in the global trade landscape.