Tamil Nadu Seeks Export Boost Amid Crisis
TN Apparel Faces US Tariff Crisis
Tamil Nadu's Industries Minister T R B Rajaa has urged the union government to raise export incentives for the state's apparel sector by at least 10 per cent to counter the severe impact of a recent 50 per cent US tariff hike on Indian imports. The tariff increase has dealt a significant blow to Tamil Nadu’s textile industry, particularly in Tiruppur, a major hub for knitwear exports, threatening an estimated Rs 3,000 crore in trade and putting thousands of jobs at risk.
Chief Minister M K Stalin highlighted the crisis on Thursday, emphasizing the need for structural reforms to protect domestic industries and workers. The tariff hike, now in effect, has disrupted Tamil Nadu’s apparel exports, which contribute significantly to India’s $16 billion textile export market. Tiruppur alone accounts for Rs 45,000 crore in annual exports, with 30 per cent (approximately Rs 12,000 crore) directed to the US. According to K M Subramanian, president of the Tiruppur Exporters Association, the tariff could slash this trade by half, impacting Rs 6,000 crore in business.
Rajaa, in a social media post late Thursday, stressed the urgency of central government intervention to safeguard the apparel industry and its allied sectors, which employ around 4.5 million workers nationwide, with 85 per cent in the MSME sector. He criticized the union government for its lack of engagement with key manufacturing states like Tamil Nadu and Maharashtra during these challenging times, noting that no discussions have been held with regional stakeholders to address the crisis.
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The Tiruppur Exporters Association, a key trade body representing the region’s textile and garment industry, reported that some exporters have already halted production due to the tariff’s impact. The association has called for immediate measures, including enhanced export incentives and policy support, to mitigate losses and stabilize the sector.
Tamil Nadu’s textile industry, a cornerstone of the state’s economy, faces rising production costs and shrinking profit margins. Without swift action, the ripple effects could extend beyond exporters to local supply chains, including cotton farmers, dyeing units, and logistics providers. Rajaa’s demand for a 10 per cent increase in export incentives aims to provide immediate relief and restore competitiveness in the global market.
