India has exempted import duties on cotton from August 19 to September 30, fulfilling the demand of industry groups who said exemptions would help make the sector more competitive.
The temporary suspension of the duty, announced in a government order late on Monday, is seen as a relief for India’s garment industry, which is reeling from a steep 50 per cent tariff on shipments to the United States.
The US tariff comprises an existing 25 per cent levy and an additional 25 per cent set to take effect later this month, imposed as a penalty for India’s purchases of Russian oil. The effective rate compares unfavourably with 20 per cent for Bangladesh and Vietnam, and 30 per cent for China.
