India is lagging in cotton exports to major markets due to a duty disadvantage vis-a-vis Bangladesh, Vietnam and Pakistan, a Confederation of Indian Textile Industry (CITI) study found. Indian export of cotton yarn to the likes of the European Union (EU) and China slumped 25 per cent in the past five years, while fabric export fell 7 per cent. As per the apex chamber of Indian textiles, Indian cotton yarn exports fell to $3.4 bn in 2017-18, from $4.5 bn in 2013-14. China, the largest importer of cotton yarn, has replaced India with Vietnam and Indonesia, as they have duty-free access while Indian yarn carries a 3.5 per cent import duty. Similarly, Indian exports of cotton yarn are subject to a 4 per cent duty in the EU, while Vietnam and Indonesia have a 3.2 per cent tariff and least developed countries (LDCs) get duty-free access. CITI has suggested inclusion of cotton yarn and higher incentive for fabric — from the current 2 per cent —in the Merchandise Exports from India Scheme, to make them competitive.