In a significant move aimed at supporting India's textile and apparel sector, the Central government has announced a temporary exemption on customs duty and Agriculture Infrastructure and Development Cess (AIDC) on cotton imports. The exemption will remain in effect from June 1 to October 31, 2026, and is expected to improve cotton availability, reduce production costs.
The Indian economy continues to demonstrate resilience despite a challenging global environment, according to the Finance Ministry’s latest Monthly Economic Review for May 2026. The report describes the near-term outlook as one of “cautious resilience,” highlighting strong structural fundamentals while warning that inflationary pressures, volatile crude oil prices and monsoon uncertainties could pose risks to growth in FY27.
