Indian textile industry seeks government incentives and calls for removal of cotton import tariffs

According to foreign media reports, Indian textile industry players are seeking to eliminate cotton import tariffs and obtain incentive policies from the government after the global financial crisis and the Russia-Ukraine conflict led to a decline in demand. The industry is also affected by rising prices of raw cotton in India, which are currently at least 10-20% higher than international cotton. KVenkatachalam, chief advisor of the Tamil Nadu Spinners Association (Tasma), said that Indian raw cotton prices are 10-20% higher than international cotton, including Chinese cotton. This prevents Indian spinners from sourcing cotton from India. At the same time, Indian government companies impose an 11% import tariff. This undermines a level playing field. From April to September, India’s cotton textile and raw cotton exports fell 29% to US$5.406 billion, compared with US$7.606 billion in the same period of 2021/22. During the same period, the export volume of cotton fabrics was US$4.791 billion, a decrease of 23% from US$6.468 billion in the same period last year.