Chennai, Aug. 17 –
Tamil Nadu Chief Minister M.K. Stalin has warned that the recent 50% import tariff imposed by the United States on Indian goods could severely impact Tamil Nadu’s textile industry, putting nearly 30 lakh jobs at risk.
In an urgent letter addressed to Prime Minister Narendra Modi, Stalin highlighted that Tamil Nadu’s economy is heavily dependent on the US market, more than most other Indian states. The textile sector alone provides employment to over 75 lakh people in the state, and the new tariff is expected to cause widespread disruption.
To mitigate this crisis, Stalin urged the Centre to resolve long-standing issues in the sector, including correcting GST discrepancies in the man-made fiber value chain, exempting cotton imports from customs duty, and ensuring the entire textile chain falls under a 5% GST slab. He also called for enhanced support measures such as extending the Emergency Credit Line Guarantee Scheme (ECLGS) with interest subvention, a moratorium on loan repayments, and raising RoDTEP incentives to 5%.
The Chief Minister further suggested introducing a special interest subsidy scheme to improve liquidity for exporters and fast-tracking Free Trade Agreements (FTAs) to reduce tariff risks. Drawing parallels with relief packages announced during the COVID-19 pandemic, he stressed the need for a dedicated financial relief package for Indian exporters.
“Just as Brazil has announced tax deferrals and concessions to support its exporters, India too must take proactive steps,” Stalin wrote, assuring that Tamil Nadu will fully cooperate with all measures taken by the Union government to overcome this crisis and protect trade.
