Tamil Nadu’s textile industry is asking for help because of problems caused by new US tariffs on Indian products. On Thursday, a group of textile group leaders from Tamil Nadu met with Chief Minister M.K. Stalin to ask for support, especially for companies that export goods overseas. This comes after the US introduced a 50% tax on Indian goods.
Tamil Nadu is responsible for 28% of India’s total textile and clothing exports. Cities like Tirupur and Karur are major places where a lot of textiles are sent to the US. In fact, Tamil Nadu is the biggest state in India that exports textiles to the US, according to a statement from the Southern India Mills’ Association (SIMA).
The group of leaders met with the Chief Minister along with the Industries Minister T.R.B. Rajaa. They emphasized the need for both the state and central government to work together to deal with the effects of the new US tariffs. The SIMA release said the Chief Minister promised to write to Prime Minister Narendra Modi to ask for quick action on policies that can help.
Minister Rajaa said the Chief Minister has confirmed the state government will keep the environment for exporters stable, competitive, and supportive. He also said the government will work closely with the central government to ensure that changing trade policies don’t hurt exporters. He added that the state will improve trade processes, logistics, and infrastructure to help exporters stay ahead in the global market.
The textile associations also asked the Tamil Nadu government to do several things. These include continuing benefits from the state’s renewable energy rules, keeping the annual banking plan for windmills over 20 years old, removing network charges on rooftop solar installations used by companies, and exempting open access power purchases from extra costs for one year.
The groups also asked for faster export refunds through a one-stop system and quicker State GST refunds for both exports and when the tax is higher than the duty. From the central government, they want a two-year pause on repaying loans, a 30% loan without needing collateral under the ECLGS, and a 5% interest reduction.
