Industry delegation highlights raw material concerns and export opportunities linked to FTAs
A delegation led by Dr A. Sakthivel, Chairman of Apparel Export Promotion Council, met the Hon’ble Vice President of India, C. P. Radhakrishnan, and submitted a representation requesting removal of the existing 11 per cent import duty on cotton. The industry delegation stated that the move would help improve the global competitiveness of India’s apparel and textile sector.
The delegation informed the Vice President that India’s apparel and textile industry is entering an important growth phase following the signing of several Free Trade Agreements (FTAs), which are expected to create export opportunities across major international markets. Industry representatives said that removing the cotton import duty would enable Indian exporters to compete more effectively with neighbouring countries that have access to raw materials at internationally competitive prices.
According to the delegation, rising global demand for apparel presents significant opportunities for Indian exporters, but higher raw material costs linked to the current cotton duty structure could affect competitiveness. They stated that rationalising the import duty on cotton would support the apparel sector in attracting additional sourcing business from FTA partner countries, improving supply chain efficiency, and securing larger export orders.
The delegation further pointed out that the textile industry’s cotton requirement for the current year is projected at around 337 lakh bales, while cotton arrivals for the 2025-26 season are estimated at 292.15 lakh bales. This has created a supply-demand gap of nearly 45 lakh bales, which the industry said is increasing pressure on spinning mills and downstream textile manufacturers due to limited availability of quality raw material and higher input costs.
Dr A. Sakthivel stated that the apparel and textile sector continues to be among the country’s largest employment-generating industries and remains important for export growth and foreign exchange earnings. He urged that timely policy support through removal of cotton import duty would help the sector benefit from emerging global opportunities and strengthen India’s position as a sourcing destination.
The delegation also included representatives from textile and apparel industry associations based in the Tirupur cluster, including TEA, SIHMA, TTPK, DAT, TEKMA, TEKPA and SIIMKA.
