Tamil Nadu Chief Minister M K Stalin has written to Prime Minister Narendra Modi, cautioning that the sharp increase in US tariffs on Indian goods could severely impact the state’s export-driven economy and put millions of jobs at risk. He urged the Centre to roll out a comprehensive national relief package for exporters and expedite Free Trade Agreements to shield India from potential economic fallout.
Stalin highlighted Tamil Nadu’s heavy reliance on the US market, noting that while 20 per cent of India’s $433.6 billion exports went to the US last year, the state contributes 31 per cent of its $52.1 billion exports to the country. “This higher dependency means Tamil Nadu will be disproportionately affected,” he said, pointing to labour-intensive sectors such as textiles, apparel, machinery, auto components, leather, marine products, and chemicals, where mass layoffs are a real threat.
The Chief Minister specifically flagged the textile sector, which employs 75 lakh people and contributes 28 per cent of India’s textile exports. He warned that nearly 30 lakh jobs could be immediately at risk if US tariffs rise from 25 per cent to 50 per cent.
To protect exporters, Stalin proposed several urgent measures: correcting the inverted duty structure in the man-made fibre value chain with a uniform 5 per cent GST, exempting import duties on all cotton varieties, extending collateral-free loans under the Emergency Credit Line Guarantee Scheme with interest subvention and moratorium, and increasing RoDTEP benefits to 5 per cent.
He also called for a broader relief package along the lines of Brazil, which offered tax deferrals and credits to support exporters. “Tamil Nadu’s thriving manufacturing sector faces a never-before-seen crisis,” Stalin warned, assuring the Centre of the state’s full cooperation in implementing urgent measures to mitigate the impact of rising tariffs.