50 percent of Donald Trump’s tariff has been implemented on India from August 27. There is a concern among all the sectors about its impact and especially the country’s textile industry is expected to have the most damage. Tamil Nadu may have to lose an estimated $ 3.93 billion (more than Rs 34600 crore) due to this tariff. This figure has been told by the Chief Minister of the state MK Stalin himself and has termed Trump’s double tariff as a major setback for the economy of Tamil Nadu.
US big market, order canceled from Trump Tariff
American tariff has worked to increase concern among Tamil Nadu exporters, for which the US has been a major export market for a long time. In the last financial year, the US was 31 percent of the total exports of the state, which is more than the national average more than 20 percent. According to the Business Today report, the orders have already been canceled due to the increase in the tariffs imposed on India by Trump and the export of Tamil Nadu has become unremaurant. Especially in textile, machinery, gems and jewelery as well as sectors of auto parts.
36% crisis on jobs up to 36%
Tamil Nadu Chief Minister MK Stalin said that the estimated loss is more than the trade price with the US and there has been a huge crisis on the jobs of people working in the industries affected by tariffs. Presenting the figures, he said that about 13 percent to 36 percent of jobs can be eliminated from almost all these sectors. According to CM Stalin, the impact of American tariff on the textile sector is the most worrying. Guidance Tamil Nadu estimates that this sector alone may lose $ 1.62 billion (more than Rs 14,279 crore).
Tamil Nadu top in textile exports
Significantly, Tamil Nadu contributes 28 per cent to India’s total textile exports, which is the highest in all states and this region is also an important economic basis for millions of families of the state. Looking at the figures, in Tiruppur district, where 65 percent of women are working in the textile industry, the industry earned a foreign currency of Rs 40,000 crore last year. This area also supports a broad ecosystem of dyeing, logistics, packaging and machinery industries.
CM demanded special package
Chief Minister Stalin reiterated his appeal made to Prime Minister Narendra Modi on 16 August, in which he made several demands including a special relief package for Tamil Nadu, GST improvement on man -made fiber, increase in RODTEP scheme. He also urged to speed up free trade agreement with the European Union, Britain and Africa to compensate for the damage in the US market.
Meanwhile, he described the Central Government’s decision to temporarily postpon 11 per cent of custom duty on cotton imports as a positive step, but also said that it has solved only a small part of the broader crisis arising from the American tariff. He said that this relief will not remain long till the fees are withdrawn or loss of damage through other incentives.
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