Textile sector is currently facing challenge arising due to rising cotton prices and shortages of raw material. This becomes critical concern for textile mills, garment manufacturers, and exporters, threatening the competitiveness of the industry in both domestic and international markets. Cotton is the principal raw material for textile value chain. However, domestic cotton production has been affected by adverse climatic conditions and changing weather patterns. Growing demand from the textile industry and supply chain constraints have further tightened availability, leading to a sharp increase in cotton prices. The rise in raw material costs has significantly impacted spinning mills and textile manufacturers. The escalated prices have squeezed profit margins, particularly for small and medium enterprises. Further, Indian exporters face increasing difficulty in maintaining price competitiveness in global markets. This is particularly concerning at a time when international demand remains subdued and competition from countries such as Bangladesh and Vietnam continues to intensify. Industry stakeholders are consistently demanding for a reduction or removal of import duties on cotton. Recognizing the gravity of the situation, the Government recently suspended the import duty on cotton for a limited period. The decision is expected to facilitate imports, augment domestic supplies, and provide temporary relief to textile manufacturers and exporters. While this measure is a welcome step, it addresses only the immediate problem rather than its underlying causes. A long-term solution requires sustained efforts to enhance domestic cotton productivity through improved seed varieties, modern farming practices, better irrigation infrastructure, and effective pest management. Therefore, addressing raw material challenges in a comprehensive manner will be beneficial for safeguarding the growth, competitiveness, and global standing of the Indian textile industry.