Shares of Arvind Ltd climbed over 2.5% to ₹300.80 on Tuesday, August 19, after the government temporarily removed the 11% customs duty on raw cotton imports, a move aimed at easing input costs for the textile and garment industry.
The Finance Ministry, through a notification, exempted cotton imports from both basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC) from August 19 to September 30. The exemption provides a short-term relief window of 42 days, which industry bodies say will help align domestic cotton prices with international levels.
The Confederation of Indian Textile Industry (CITI) welcomed the measure, stating it had been a long-pending demand. “CITI has long been requesting that the import duty on cotton be removed to help domestic cotton prices align with international prices. We, therefore, greatly welcome this measure, even though the relief is only temporary,” said Chandrima Chatterjee, Secretary, CITI.
The move comes at a time when Indian textile exporters are grappling with steep 50% tariffs imposed by the US, far higher than the 20% levied on Bangladesh and 30% on China. Exporters fear revenue losses and shrinking market share in the crucial American market, which remains India’s largest destination for textile and apparel shipments.
Arvind Ltd, a leading textile manufacturer with strong exposure to fabrics and garments, is expected to benefit from the exemption, along with peers like Vardhman Textiles, Welspun, Trident and Raymond. Market analysts believe the relief could ease cost pressures in the near term, boost margins, and support export competitiveness, even if shipments don’t see a significant uptick during the exemption period.
