New Delhi, Aug. 28 -- A day after the US's 50% tariffs on Indian goods took effect, the Indian government extended the exemption on raw cotton import duty and agriculture cess till 31 December 2025.

The relief, which was initially notified for the period between 19 August and 30 September, has now been expanded to cover the last three months of the year, according to the finance ministry. Before the exemption, cotton imports into India attracted a combined duty of around 11%.

The decision, while aimed at shoring up supplies for the domestic textile industry ahead of the festival season, is also being seen as a calibrated gesture toward Washington at a time of strained trade relations.

This comes at a crucial time in India-US trade rela...