New Delhi, Sept. 2 -- New Delhi: The Indian government's decision to allow duty-free cotton imports, mainly from the United States, is expected to provide some relief to the country's apparel exporters, who face a 50% duty in the US. Industry leaders believe the move will help manufacturers by raising the share of US-origin inputs in finished garments, partially shielding them under America's reciprocal tariff rules.

Under the new tariff structure, duties are applied only to the portion of a product that does not use American inputs. If at least 20% of a product is made with US-origin content, that share is exempt from the additional duty, which is levied only on the balance 80%. If the threshold is not met, the entire value of the produ...