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Union Finance Minister Nirmala Sitharaman assured textile exporters that the government is working on certain relief measures for them across different
industries, sources told ET Now. She said that very soon the government will come out with relief measures. Sitharaman chaired an interactive meeting with the representatives of the textile industry in Chennai on Tuesday in the backdrop of economic challenges affecting the sector, including concerns over the US tariff of 50 per cent.
Textile exporters, in particular, have sought a relief fund amounting to 10 per cent of the freight that is currently stuck on board and en route to the US. Exporters did also mention that nearly Rs 4,500 crore worth of goods are stuck in the pipelines due to the tariffs, said sources.
The exporters are looking at a direct loss of Rs 1,100-1,200 crores on these goods and therefore the exporters are seeking relief from the government.
Meeting with Textile Exporters
India’s textile exports (to the US) accounted for 28 per cent ($11 billion) of the sector’s total exports, Federation of Indian Export Organisation (FIEO) represented by P Gopalakrishnan, Regional Chairman, FIEO (SR), said.He sought financial relief measures, export incentives, GST support, working capital solutions, and urgent relief announcements. The USA remains India's largest export market for textiles and apparel exports.
"The finance minister assured that the government is actively working on these issues and exporters can expect support measures shortly," Gopalakrishnan said.
Apparel, Made-Ups Home Furnishing Sector Skill Council (AMHSSC) India chairman A Sakthivel submitted a memorandum to Sitharaman seeking immediate financial relief measures to address the recent challenges arising from the reciprocal tariff imposed by the USA.
"Responding, the finance minister said the government is actively working on the requests and would announce suitable relief measures soon," Sakthivel, who participated in the Textile Industry Associations and Export Promotion Councils’ interactive meeting, said.
The AMHSSC has called for the reintroduction of the Focus Market Scheme for the US market, restoration of the Interest Equalisation Scheme, grant of a two-year moratorium with reclassification of NPA norms, and taking up with the US authorities the request for exemption of Indian garments manufactured using US cotton imports. (With PTI Inputs)
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