The Southern India Mills’ Association (SIMA) expressed its gratitude to the Prime Minister Narendra Modi and the Union Government for extending the exemption on cotton import duty until December 31, 2025—a much-needed relief for the textile sector grappling with recent global trade challenges.

The exemption, originally set to end on September 30, is poised to help the industry, especially in light of the growing strain caused by increased US tariffs on Indian textile products.

SIMA convened a press conference in Coimbatore to formally acknowledge the government’s support and to appeal for additional measures to safeguard the industry during this period of crisis created by the Trump adminstration.

Dr.R. Sundararaman, Chairman of SIMA, and Ravi Sam, Vice-Chairman of TEXPROCIL, jointly addressed the media. Coimbatore South MLA Ms. Vanathi Srinivasan was also present at the event.

SIMA's Chairman noted that the Indian textiles and clothing industry is valued at approximately $172 billion, comprising a $135 billion domestic market and $37 billion in exports, with one-third of exports directed to the US. He said that India plays a critical role in supplying home textiles to the US market. The relationship is mutually beneficial—just as we rely on the US for business, they depend on India for these essential products.  

He mentioned that the government is actively working to provide interim support during this unexpected disruption, and he also added that in an effort to diversify export markets, India is preparing to send trade delegations to countries such as Japan, Australia, the UK, UAE, and Switzerland, with whom it has signed Free Trade Agreements (FTAs).

Ravi Sam emphasized the pressing challenges arising from the US tariff hike, now reaching 50%. Earlier, when tariffs were at 25%, US buyers did not ask Indian exporters to bear the burden. But at 50%, buyers are no longer able to absorb the cost, and the industry is under pressure. He called on the Union Government to consider providing an immediate moratorium on repayment of principal loans and interest subvention to help the sector navigate this phase. 

He further said that they have been informed that the government will soon convene meetings with industry bodies across various sectors to gather feedback and frame suitable interventions. Mr.Sam also highlighted the urgent need for high-quality cotton, especially as the new harvest will arrive only post-Diwali.  He also requested the Tamil Nadu State Government to reduce the Cross Subsidy Surcharge (CSS) on electricity.

Vanathi Srinivasan MLA commended the Union Government for taking a balanced approach that protects both cotton farmers and the textile industry. She extended her thanks to the Prime Minister, Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Agriculture Minister Shivraj Singh Chouhan for facilitating duty-free cotton imports until year-end.

Regarding the tariff issue, she confirmed that the Union Government will soon organize consultations with industry stakeholders across sectors. These discussions will be followed by focused meetings with the relevant ministries to devise sector-specific solutions.

“India’s textile sector has always turned adversity into opportunity. Under Prime Minister Modi’s leadership, the government stands firmly with the industry to overcome this challenge and emerge stronger," she said.

Additional request by SIMA:

Govt might consider addressing the GST duty inversion in the MMF Value Chain and slotting the entire value chain in the 5% GST slab on par with cotton value chain, thus making the Indian clothing products not only cheaper in India but also globally competitive.