Textiles ministry explores duty relief measures to support exports amid cost pressures

Summary

• Policy under discussion: The Ministry of Textiles is evaluating duty relief on key raw materials to support exporters facing rising input and logistics costs.
• Export pressure: India’s apparel exports have shown volatility in recent months, reflecting global demand slowdown and supply chain disruptions.
• MMF focus: Industry stakeholders are seeking rationalization of duties and trade measures on man-made fibre inputs to remain globally competitive.

NEW DELHI, April 17, 2026 — India’s textile sector may see targeted policy support as the government examines measures to ease cost pressures on exporters navigating a challenging global trade environment.

Officials from the Ministry of Textiles indicated that proposals are being discussed with the Ministry of Finance to rationalize import duties on select raw materials, including specialty fibres and high-grade cotton varieties that are not widely available domestically.

Rising input and logistics costs

Exporters have flagged a steady increase in input costs, driven by global supply chain disruptions and higher freight rates. Rerouting of shipping routes in parts of West Asia has added time and cost to deliveries, affecting margins for labour-intensive segments like garments.

While claims of a uniform 25% logistics spike vary by route and commodity, industry bodies broadly agree that freight volatility has become a key concern for exporters in recent months.

Focus on raw material access

Industry stakeholders have long argued that import duties on certain raw materials—such as extra-long staple (ELS) cotton and man-made fibre inputs—can raise production costs for export-oriented units.

The government is now examining whether temporary or calibrated duty adjustments could help maintain competitiveness, especially in segments like technical textiles, sportswear, and value-added garments.

Discussions around anti-dumping duties on select yarn categories are also ongoing, though no final decision has been announced.

Market diversification efforts

With demand conditions uneven in traditional markets such as the US and parts of Europe, exporters are increasingly exploring opportunities in Asia and other emerging regions.

Trade agreements and ongoing negotiations are expected to play a role in enabling better market access, though diversification remains a gradual process rather than a short-term shift.

Why this matters

• Employment sensitivity: The textile sector is one of India’s largest job creators, making export stability critical.
• Global competition: Competing exporters like Bangladesh and Vietnam continue to benefit from cost advantages and trade access.
• Cost management: Duty rationalization can help offset external shocks such as freight volatility and raw material shortages.

FAQs

Q1. Are duty cuts on textile inputs confirmed?

No. They are currently under discussion and have not been officially announced.

Q2. Why is ELS cotton important?

It is used in premium textile products and is not produced in sufficient quantities domestically.

Q3. Will exports shift to new markets quickly?

Diversification takes time and depends on trade agreements, logistics, and demand conditions.