a day ago
- Business
- Fashion Value Chain
SIMA Seeks Relief Package to Offset U.S. Tariff Impact
The Southern India Mills' Association (SIMA) has appealed to the Hon'ble Chief Minister of Tamil Nadu to recommend to the Prime Minister of India an urgent relief package to help the textile sector withstand the adverse impact of the newly imposed 50% U.S. tariff on Indian goods.
Tamil Nadu, accounting for one-third of India's textile manufacturing capacity and 28% of total textile and clothing exports, faces a severe blow as it is the country's largest exporter of textiles to the U.S.
Recent state-led incentives such as interest subvention for spinning modernization, capital subsidies for garmenting, and support for technical textiles have strengthened the sector. However, the U.S. tariff threatens to undo these gains, leading to halted production, job losses, and disrupted exports.
A SIMA delegation, including Chairman Dr. S. K. Sundararaman and Secretary General Dr. K. Selvaraju, met the Chief Minister in the presence of Industries Minister Dr. T. R. B. Raja and submitted a memorandum outlining urgent relief needs.
Dr. Sundararaman thanked the Chief Minister for agreeing to write to the Prime Minister, recommending immediate interventions to avert crisis and retain U.S. market access.
He proposed measures including:
A two-year moratorium on loan repayments
30% collateral-free loan under ECLGS with 5% interest subvention
Enhancement of RoDTEP benefits by 5%
Inclusion of all textile exports under pre and post-shipment credit
He further urged for removal of the 11% import duty on cotton, correction of the GST inverted duty structure in MMF value chains, and renewable energy relief under Tamil Nadu's regulations.
Calling the U.S. tariff shock 'akin to the Covid crisis,' Dr. Sundararaman emphasized that urgent state and central interventions are critical to sustain exports, prevent NPAs, and support Tamil Nadu's vision of contributing to India's USD 350 billion textile target and the state's USD 1 trillion economy goal by 2030.
