New Delhi, Aug. 20 -- The government has exempted cotton imports from all customs duties for 43 days starting Tuesday, aiming to stabilise domestic prices and help garment exporters compete against rivals in the American market where the Trump administration has imposed steep tariffs on Indian goods. While Indian exports face a 25% reciprocal tariff in the US, competing nations face only 20%. The relief is particularly crucial for labour-intensive textiles and garments, which operate on low margins despite high volumes. Citing "public interest", the central government has exempted cotton imports "from the whole of the duty of customs" and from the agriculture infrastructure and development cess (AIDC), a finance ministry notification dated August 18 said. The exemption runs from August 19 to September 30. The Union ministry of textiles on Tuesday said the exemption is aimed at "stabilising domestic cotton prices and supporting the textile industry". The move removes 5% basic customs duty, 5% AIDC and 10% social welfare surcharge-a cumulative 11% reduction that addresses persistent industry demands for relief from rising domestic prices and supply constraints. "This decision is expected to lower input costs across the textile value chain encompassing yarn, fabric, garments and made-ups," the textiles ministry said. The exemption, notified by the Central Board of Indirect Taxes and Customs, aims to enhance raw cotton availability, reduce inflationary pressure on finished products and protect vulnerable small and medium enterprises. Commenting on the import duty exemption, Siddhartha Khemka, head of research - wealth management at Motilal Oswal Financial Services, said, "This provides relief to the garment sector, helping it stay competitive amid high US tariffs, and supports domestic textile production." Cotton imports surged 107.4% from $579.2 million in FY2024 to $1.20 billion in FY2025, with Australia ($258.2 million), the United States ($234.1 million), Brazil ($180.8 million) and Egypt ($116.3 million) as major suppliers, according to Global Trade Research Initiative data. "The waiver is expected to help mills facing high input costs and support yarn and fabric exporters struggling with competitiveness, particularly ahead of India's festival season. The measure is a time-bound stopgap to stabilise markets before the new crop arrives," said GTRI founder Ajay Srivastava. "The biggest winner from India's new duty-free window, however, will be the US - the second-largest supplier after Australia," he said....