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Informist, Thursday, Jan. 8, 2026

MUMBAI – Textile industry associations have urged the government to remove the 11% import duty on cotton and extend two years of moratorium for the repayment of principal amount for all textile products in the value chain, according to a release. It also urged for a 30% collateral free loan under Emergency Credit Line Guarantee Scheme with a 5% interest subvention, it said. 

The appeal for these relief packages were made by Confederation of Indian Textile Industry Chairman Ashwin Chandran and Southern India Mills' Association Chairman Durai Palanisamy on behalf of the cotton and textile Industry to the parliamentary standing committee on commerce chaired by Dola Sen. The committee met textile industry associations in Coimbatore on Jan. 8 to review the impact of the 50% US tariff and assess India–US trade relations. The committee held detailed discussions with representatives on the challenges faced by the textile sector due to rising tariffs and weak export demand, the release said.

The Industry also urged for relief measures and the Credit Guarantee Scheme expansion to various Tier 2 and Tier 3 exporters across the value chain having indirect but substantial export exposure to the US. It also asked for reintroduction of the Focus Market Incentive Scheme and extend 20% of the free-on-board value for all the exports made to the US with effect from Aug. 27 in the form of transferable duty credit scrip.

They also urged the Centre to increase the interest subvention scheme from 2.75% to 5.00% for all categories of exports without any cap, according to the release. K.V. Srinivasan, former chairman of Confederation of Indian Textile Industry, also sought extension of export credit guarantee benefits to all markets, enhancement of rebate of state and central taxes and levies, remission of duties and taxes on exported products, and duty drawback rates for textile products, especially home textiles.

The industry expressed hope that the government would announce timely measures to mitigate the impact of higher US tariffs and support textile exporters.  End

Reported by Taniva Singha Roy

Edited by Akul Nishant Akhoury

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