The Indian government has removed the import tax on raw cotton. This move is a big relief for the country's textile and garment industry. The tax, which was 11%, has been taken away to help local businesses facing tough competition in the global market.

The tax removal is a response to high tariffs on Indian goods from other countries, especially the United States. By cutting the import tax, the government aims to lower the cost of making clothes and textiles. This will make Indian products cheaper and more competitive against goods from other countries. The tax has been removed until the end of December 2025.

While the textile industry is very happy with this decision, some farmers are worried. They fear that a rise in cheaper imported cotton could lower the prices of the cotton they grow. This could reduce their income. However, the government says the main goal is to help exporters and not to harm local farmers.

This step is a key part of the government's plan to boost exports and support the "Make in India" initiative. By making the textile sector stronger, the government hopes to increase its share in the global market and create more jobs in the country.