5 days ago
- Business
- New Indian Express
Tamil Nadu urges Centre to shield textile sector as US tariffs loom
CHENNAI: Tamil Nadu has called on the Union government to step in as US tariffs threaten to derail its textile industry, which employs 75 lakh people and is one of the largest contributer to India's textile exports. Chief Minister MK Stalin warned that without immediate action, up to 30 lakh jobs in textiles sector could be at risk if tariffs rise from 25 per cent to 50 per cent.
In a letter to Prime Minister Narendra Modi, Stalin laid out a policy roadmap aimed squarely at the textile sector, the state's largest export earner. Key proposals include fixing the inverted duty structure under the Goods and Services Tax (GST) for the man-made fibre value chain by bringing the entire chain under a 5 per cent slab, and eliminating import duties on all varieties of cotton.
The chief minister also pushed for stronger credit support, extending the Emergency Credit Line Guarantee Scheme (ECLGS) to cover 30 per cent collateral-free loans, with a 5 per cent interest subsidy and a two-year moratorium on principal repayment. He further recommended boosting the Remission of Duties and Taxes on Export Products (RoDTEP) scheme to 5 per cent and expanding pre- and post-shipment credit to cover all textile exports, including yarn.
