Textile exporters meet Tamil Nadu CM, seek support to face U.S. tariff challenges
Tamil Nadu accounts for 28% of India's total textile and clothing exports with hubs such as Tiruppur and Karur shipping substantial volume of goods to the U.S. The State is the single largest exporter of textiles to the U.S. from India, said a press release from the Southern India Mills' Association.
The delegation that met the Chief Minister in the presence of Minister for Industries T. R. B. Rajaa highlighted the urgent need for coordinated State and Central government interventions to mitigate the adverse impact of the proposed U.S. tariff.
The Chief Minister indicated that he will send a letter to Prime Minister Narendra Modi with a recommendation for immediate policy interventions, the SIMA release said.
Mr. Rajaa said on X, 'The Honourable Chief Minister reaffirmed the government's commitment to creating a stable, competitive, and supportive environment for exporters. We discussed how Tamil Nadu will work closely with the Union government to ensure our exporters are not disadvantaged by changing global trade policies.
'The government will also intensify efforts in trade facilitation, logistics, and infrastructure development to help exporters stay ahead in an increasingly competitive world.
'Tamil Nadu's exporters are a vital pillar of our economy, and their success is our shared success !.'
The industry sought from the Tamil Nadu government extension of benefits under the State's Renewable Energy Regulations, including continuation of the annual banking scheme for windmills over 20 years old, withdrawal of network charges on captive rooftop solar installations, and exemption of open access power purchases from cross-subsidy surcharge and additional surcharge for a period of one year.
The State should also fast-track export refunds through a single-window mechanism and expedite State GST refund claims, both for exports and inverted duty.
The delegation demanded from the Centre two-year moratorium for repayment of the principal loan amount, along with a 30% collateral-free loan under the Emergency Credit Guarantee Scheme (ECLGS) and 5% interest subvention.
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