The temporary suspension of import duties on cotton, announced in a government order late on Monday, comes into effect from August 19.
The government of India has exempted import duties on cotton till September 30 in what is being seen as a relief for country’s garment industry, which is reeling from the 50 per cent tariff on shipments to the United States.
The temporary suspension of the duty, announced in a government order late on Monday, comes into effect from August 19.
US President Donald Trump has imposed 50 per cent tariff on India – comprising an existing 25 per cent levy and an additional 25 per cent set to take effect later this month as a penalty for Russian oil purchase.
Before the exemption, cotton imports were subject to an 11 per cent duty.
Through a notification issued by the ministry of finance, the Central Board of Indirect Taxes and Customs (CBIC) said all imports under heading 5201—covering raw cotton—will be exempt from duties between 19 August and 30 September, according to a LiveMint report.
Industry bodies such as the Confederation of Indian Textile Industry (CITI) had urged the government to scrap the cotton import duty to help make the sector more competitive.
The development reflected in the stock market on Tuesday as textile makers including Vardhman Textiles, Raymond Lifestyle, Indo Count and Welspun Living surged 3 per cent-8 per cent, according to a Reuters report.
India has called out Trump’s additional tariff move and reiterated that these actions are “unfair, unjustified and unreasonable.”
Here’s what India said in response to Trump tariffs
The United States has in recent days targeted India’s oil imports from Russia.
2. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.
3. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.
4. We reiterate that these actions are unfair, unjustified and unreasonable.
5. India will take all actions necessary to protect its national interests.
About The Author
