Chennai, Dec 18 (PTI) Concerned over the escalating crisis in Tamil Nadu's export sectors, triggered by the “punitive” 50 per cent US tariff on Indian exports, Chief Minister M K Stalin on Thursday urged
Prime Minister Narendra Modi to prioritise resolution of this tariff through bilateral agreement at the earliest.
In Tiruppur, the knitwear capital of India, the exporters have reported a staggering wipe out of Rs 15,000 crore in confirmed orders, coupled with enforced production cuts of up to 30 per cent across units.
“New orders are also drying up at an alarming rate. This has translated into a combined daily loss of Rs 60 crore in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur districts, pushing many small and medium enterprises to the brink of collapse,” the chief minister said.
The current trade stalemate was not merely an economic setback but a looming humanitarian challenge due to the irreparable damage caused by the tariffs, Stalin argued in a letter to the prime minister.
“As you are aware, our state is the bedrock of India's textile and apparel sector exports, contributing 28 per cent to the nation's textile exports and employing around 75 lakh workers. Equally significant is our 40 per cent share in India's leather and footwear exports, employing over 10 lakh workers,” the chief minister pointed out.
These tariffs were squeezing profit margins and compelling exporters to offer deep discounts just to retain their clientele, thus eroding their competitiveness and viability. The ripple effects are profound: lakhs of jobs hang in the balance, with the sectors already witnessing layoffs and wage deferrals that threaten the stability of entire communities.
Worse still, international buyers were rapidly diverting orders to competitors like Vietnam, Bangladesh and Cambodia, which have a current tariff advantage over us. “Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back. This has ominous long-term implications for the future employment prospects of our youth, especially women,” he further said.
"In this context, I implore you to prioritise resolution of this tariff issue through bilateral agreement at the earliest possible juncture,” he urged and said a swift decision would not only revive our exporters' fortunes but also reinforce India's position as a reliable global manufacturing hub.
Exuding confidence over the prime minister’s commitment to fostering equitable trade and protecting domestic industries and jobs, Stalin said he looked forward to an early resolution of this impasse. PTI JSP JSP ADB
