India’s cotton import policy shift may affect global clothing prices and textile waste flows

India’s cotton trade policy has recently shifted, creating uncertainty for textile producers and potentially wider ripple effects across global clothing markets. While the measures were introduced with domestic considerations in mind, their implications could extend far beyond India — influencing clothing prices, fibre choices, and textile waste flows worldwide.

India is one of the world’s largest producers and processors of cotton, as well as a central hub for global garment manufacturing. After a period in which imported cotton was subject to standard import duties, the Indian government temporarily suspended these duties in late 2025 to ease pressure on domestic textile manufacturers.

The suspension was explicitly time-limited, and as of early 2026 the longer-term direction of India’s cotton import policy remains unclear. The government has retained the option to reinstate duties or adjust them depending on market conditions, domestic farmer interests, and broader trade considerations.

For textile producers, this has introduced a degree of uncertainty around raw material costs rather than a stable new equilibrium.

India is one of the world’s largest producers and processors of cotton, as well as a central hub for global garment manufacturing.

Why India’s cotton import policy matters for clothing prices

Cotton remains the single most widely used natural fibre in everyday clothing. Changes in cotton trade policy directly affect input costs for manufacturers, which in turn influence retail outcomes.

When cotton becomes more expensive — or when future pricing is uncertain — manufacturers typically respond in one or more of the following ways:

• Higher retail prices for cotton-based garments,

• Substitution toward cheaper synthetic fibres, or

• Cost-cutting elsewhere in the supply chain, often affecting durability and quality.

Even temporary policy shifts can contribute to price volatility, particularly in a global industry that relies on long planning cycles and predictable input costs.

Implications for reuse, fibre substitution, and textile waste

In theory, higher cotton prices could make reused clothing more competitive relative to newly produced garments. In practice, however, past experience suggests that rising or uncertain raw material costs more often accelerate fibre substitution than reuse.

This tends to increase reliance on synthetic fibres, which are generally more difficult to recycle and more likely to contribute to long-lived textile waste. As a result, changes in cotton economics can indirectly shape the composition of garments entering second-hand markets, recycling systems, or waste streams in the years ahead.

Why the timing of India’s cotton policy matters in 2026

The policy shift comes at a moment when many countries are struggling with fast fashion’s environmental impacts. Even though India’s suspension of cotton import duties was temporary, its effects may continue to unfold during 2026 as producers, traders, and brands adjust sourcing strategies.

Small changes in the economics of a dominant fibre like cotton can quietly influence what kinds of clothes are made — and ultimately what kinds of textiles end up being reused, recycled, or discarded.