It is reported that in order to alleviate the high cost of raw materials currently facing the local clothing factories in India, the government of India intends to lower the import tariff of cotton, and plans to reduce the import tariff of cotton from 10% to 5%. It also plans to abolish the existing 4.5% additional duty on cotton imports and export rebates for 1% of the relevant packaging materials. It intends to impose zero tariffs on cotton imported from the least developed countries in Africa (this measure has been included in the recently announced tariff free measures for the least developed countries).

According to the analysis, the tax reduction plan will be part of the package proposed by the government to reduce the cost of raw materials in the clothing industry. Besides, the Indian government is also actively developing other relevant measures.