The Southern India Mills’ Association (SIMA) expressed gratitude to Prime Minister Shri Narendra Modi and the Union Ministers for Finance, Commerce & Industry, Textiles, and Agriculture for extending the exemption of 11% import duty on all varieties of cotton until 31st December 2025. Initially granted between 19th August and 30th September 2025, the extension was crucial since importing cotton typically requires a lead time of three months. The decision has provided much-needed relief to the textile industry, which has been severely impacted by the sudden imposition of a 50% tariff on Indian exports by the US. India’s textile and clothing industry, valued at USD 172 billion (with exports worth USD 37 billion and a domestic market of USD 135 billion), continues to demonstrate resilience. Industry leaders emphasized that focusing on strengthening the domestic market with 7–8% growth could offset the USD 10–11 billion shortfall in exports to the US. Dr Sundararaman K S (Chairman,SIMA) At a press briefing, Dr. S. K. Sundararaman, Chairman, SIMA, and Mr. Ravi Sam, Vice-Chairman, TEXPROCIL, thanked the government for its timely action, which will enable exporters to meet commitments and seize summer market opportunities. They also acknowledged the role of Coimbatore South MLA Smt. Vanathi Srinivasan in facilitating the extension. Concerns about the impact of duty-free imports on cotton farmers were addressed by highlighting that India’s cotton production has fallen to under 295 lakh bales, against an industry demand of 318 lakh bales, resulting in historically low closing stocks. This shortage threatens the capital-intensive cotton value chain, which directly employs 35 million people. The government has already launched the Mission for Cotton Productivity, allocating Rs. 5,900 crore to address productivity and fibre quality issues. Duty-free cotton imports and exports are seen as a balanced strategy to support both farmers and industry, with farmers protected by the Minimum Support Price. SIMA and TEXPROCIL further noted that the government is actively working with Export Promotion Councils and industry associations on new relief measures and policies to accelerate growth. Initiatives include promoting exports through FTAs with countries such as Japan, Australia, the UK, UAE, and Switzerland, while fast-tracking negotiations with the EU and others. They also urged the government to address challenges like GST duty inversion in the MMF sector, ensuring parity with the cotton value chain under a 5% slab, as well as tackling issues related to Manmade Fibre Quality Control Orders and liquidity crunch. Proposed relief measures include extending a two-year moratorium on loan repayments, 30% collateral-free loans with interest subvention, enhanced export benefits, and expanded credit facilities. Industry leaders are confident that India can turn the challenge of US tariffs into an opportunity by scaling domestic consumption, diversifying exports, and working towards the vision of achieving USD 350 billion business size, including USD 100 billion exports, by 2030.