Tamil Nadu Chief Minister M Ok Stalin
| Photograph Credit score:
JOTHI RAMALINGAM B
Tamil Nadu’s thriving manufacturing sector is dealing with a disaster not like any seen earlier than, threatening tens of millions of livelihoods throughout numerous sectors as a result of US tariff on imports from India. Tamil Nadu Chief Minister MK Stalin requested Prime Minister Narendra Modi’s pressing intervention on this matter, in session with the related ministries and trade stakeholders.
To supply rapid reduction, the Centre wants to think about introducing a particular curiosity subvention scheme for all exporters affected by tariffs to enhance liquidity and cut back price burdens and in addition speed up Free Commerce Agreements and bilateral preparations to offset high-tariff market dangers, he stated.
Within the letter to the Prime Minister on Saturday, the Chief Minister assured him the State’s full cooperation in implementing all mandatory measures to navigate this commerce predicament. “We admire the efforts by the Union Authorities to realize a mutually helpful commerce settlement between India and the US and absolutely help our place to defend nationwide pursuits,” he stated within the letter.
Tamil Nadu faces extreme implications as a result of present 25 per cent tariff and its potential escalation to 50 per cent. Within the final monetary 12 months, whereas 20 per cent of India’s whole items exports of $434 billion have been to the US, 31 per cent of Tamil Nadu’s $52 billion items exports went there. This larger dependency on the US market clearly implies that tariff affect on Tamil Nadu will probably be disproportionately better than for many different Indian states. Therefore, this tariff has important implications for Tamil Nadu’s manufacturing sector and employment situation, stated Stalin.
Essentially the most affected sectors are textiles, apparels, equipment, auto parts, gems and jewelry, leather-based, footwear, marine merchandise and chemical compounds. What’s much more regarding is that every one these sectors are labour-intensive, whereby any export slowdown will rapidly lead to mass layoffs, he stated.
Tamil Nadu accounted for 28 per cent of India’s textile exports in 2024-2025, the most important contributor amongst all Indian states. Particularly, our textile sector employs practically 75 lakh folks and with a 25 per cent tariff and a proposed 50 per cent tariff, an estimated 30 lakh jobs are at rapid threat. To mitigate this disaster, it’s important to handle structural points which have lengthy hindered our export competitiveness, stated Stalin within the letter.
Stalin stated in depth consultations with the trade associations from the affected sectors, it’s evident that the textile sector urgently wants help in two elements – correction of the GST inverted obligation construction for the man-made fiber worth chain, by bringing all the chain beneath a 5 per cent GST slab and exemption of import obligation on all types of cotton.
As well as, the trade seeks extension of 30 per cent collateral-free loans beneath the ECLGS with a 5 per cent curiosity subvention and a two-year moratorium on principal reimbursement, together with enhancing RoDTEP advantages to five per cent, extending pre- and post-shipment credit score to all textile exports, together with yarn, was additionally highlighted as an necessary step to strengthen our export competitiveness, he stated.
Comparable challenges are being confronted by different sectors as a consequence of tariff impacts and aggressive pressures in international commerce.
Contemplating the dimensions of the issue, a particular monetary reduction bundle together with a moratorium on principal reimbursement, just like the one carried out throughout the COVID interval is critical to help our exporters. “We stay up for such an initiative on the nationwide degree just like the one from the Brazil authorities which has introduced tax deferrals and tax credit to exporters,” Stalin stated.
Printed on August 16, 2025
