India has extended an import duty exemption on cotton by three months, until the end of December, a government order showed on Thursday, as New Delhi seeks to support the local garment industry that has been hit by hefty US tariffs.

The world's second-biggest cotton producer had earlier announced an exemption on cotton imports from an 11% duty until September-end and has now extended that to December 31.

US President Donald Trump's doubling of tariffs on imports from India to as much as 50% on good such as garments and jewellery took effect on Wednesday.

The United States is India's largest market for garments and jewellery, worth nearly $22 billion in 2024. India has a 5.8% share in the US garment market, behind China, Vietnam and Bangladesh.

The duty exemption until year-end will let Indian textile companies import cheaper cotton, easing pressure amid a slowdown in US demand, Atul Ganatra, president of the Cotton Association of India, told Reuters.

"With the duty-free extension, imports could hit a record 4.2 million bales this year. Strong imports are likely to continue into the first quarter of next year as well," Ganatra said.

India's cotton marketing year runs from October to September.