TN Minister Urges Higher Export Incentives

Chennai, Aug 29 (PTI) The union government should increase the export incentives provided to apparel exporters from Tamil Nadu by at least 10 per cent, State Minister T R B Rajaa has said.

His comments come in the backdrop of Chief Minister M K Stalin stating that the US tariff hike to 50 per cent on Indian imports has severely affected the state's exports, impacting about Rs 3,000 crore to Tiruppur's textile sector, besides putting thousands of jobs at risk.

Stalin on Thursday urged the Central government to introduce structural reforms to safeguard the domestic industries and workers.

Echoing similar views, Rajaa, who is the Minister for Industries, in a social media post late on Thursday said the exporters need the urgent attention of the union government.

"Right now, to protect the apparel industry, its allied sectors, and lakhs of workers, the Central government must immediately increase export incentives by at least 10 per cent," Rajaa said.


He pointed out that India's textile exports employ about 4.5 million workers, with 85 per cent of them representing the MSME sector.

The union government has remained 'mute' without holding any discussions with regional stakeholders especially with large manufacturing states like Tamil Nadu and Maharashtra during these extremely 'tumultous times', he said.

Referring to his recent interaction with a Tirupur Exporters Association official, Rajaa said with the 50 per cent tariff imposed by the United States on Indian imports which now in effect, apparel exporters from Tamil Nadu are heading for a 'severe crisis'.

Tirupur Exporters Association is a registered trade body representing the industry in Tiruppur, Coimbatore, considered as the textile and garment hubs of Tamil Nadu.

"Total exports made from Tiruppur are about Rs 45,000 crore of which 30 per cent (Rs 12,000 crore) is accounted to the US market. We expect 50 per cent business, which is about Rs 6,000 crore to be impacted," the association president K M Subramanian said.

As an immediate measure, he said, some garment exporters, who have been traditionally shipping to the United States market, have halted production at their facilities.