New Delhi: In wake of the 50% tariffs on India imposed by the US, the Union Finance Ministry on Monday (August 18) notified the elimination of 11% duty on cotton imports with immediate effect.The move came amid widespread fears of job losses in the textile sector due to US tariffs that would leave Indian products uncompetitive in the US market, India’s largest export market, reported Indian Express.The government stated that the ending of import duty on cotton as well as Agriculture Infrastructure and Development Cess (AIDC) “is necessary in the public interest”. It added that the notification will come “into force with effect from August 19, and shall remain in force up to and inclusive of September 30”.The steep tariffs imposed by US president Donald Trump is expected to hit the textile sector hardest because US is a key market for Indian Ready-Made Garments (RMG) exports. The country’s share in India’s total garment exports in 2024 was 33%, according to the Apparel Export Promotion Council (AEPC).“CITI has long been requesting that the import duty on cotton be removed to help domestic cotton prices align with international prices. We, therefore, greatly welcome this measure taken by the authorities even though the relief is only available temporarily,” said Confederation of Indian Textile Industry (CITI) secretary general Chandrima Chatterjee.According to the AEPC, the most exported products by India to US include cotton T-shirts (9.71%); women’s or girls’ dresses of cotton (6.52%); babies’ garments of cotton (5.46%), etc.“The top three exports of India to the US hold 10%, 36%, and 20% share, respectively, in the US total imports of these products globally,” said AEPC.Similarly, home textiles and carpets are also important sectors where exports play a significant role, accounting for 70-75% and 65-70% of total sales, respectively.The US accounts for 60% of exports for home textiles and 50% of exports for carpets.CITI has pointed out that the while the US tariff rate for India has been set at 50%, the US tariffs for competing countries such as Bangladesh is 20%, Indonesia and Cambodia are 19% each and Vietnam is 20%, reported Indian Express.