India’s Cotton Imports Duty-Free Exemption

• India has allowed cotton imports at zero duty until December 31, 2025.

• The exemption comes amid a drop in textile production, with an estimated 311.4 lakh bales in 2024.

• The decision signals a significant loss of market to the US, which has seen its cotton exports drop from $8.82 billion in 2022 to $4.96 billion in 2024.

• The US Department of Agriculture welcomed the move, seeing it as increasing US cotton bookings and helping Indian textile exporters access cheaper and contamination-free fibre.

• The move is seen as encouraging in the context of a low moment for Delhi-Washington ties.

• However, the Indian cotton farmer has been deprived of new cropping technology after genetically modified Bt hybrids, leading to a drop in yields and susceptibility to secondary pests.

• The US is now expected to reciprocate by scrapping the unreasonable 25% Russian oil import “penalty” on India.

India cotton import policy is important topic for Civil service exam (WBCS).

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