Tamil Nadu's Textile Sector Faces Export Crisis Amid US Tariff Hike

The apparel industry in Tamil Nadu is confronting a severe challenge as the United States has increased tariffs on Indian imports to 50%. State Minister T R B Rajaa has urged the union government to raise export incentives by at least 10% to aid exporters.

The heightened tariffs have affected Tamil Nadu's exports, especially hitting hard the Tiruppur textile sector, which could see an impact of approximately Rs 3,000 crore, with thousands of jobs at stake. The state's Chief Minister, M K Stalin, has called for structural reforms from the central government to protect local workers and industries.

The Textile Exporters Association in Tiruppur has reported that their exports account for Rs 45,000 crore annually, with a significant portion destined for the US. Without government intervention, half of their US-bound business, equating to Rs 6,000 crore, could be jeopardized, leading some exporters to halt production.

(With inputs from agencies.)