CHENNAI: Expelled AIADMK leader and former Chief Minister O Panneerselvam has urged the Union Government to announce a comprehensive scheme to support the textile and other affected industries currently facing a crisis due to the United States’ imposition of a 50% tariff.
Panneerselvam, in a statement, stated that the proposed scheme should include components such as interest rate waivers, subsidies, incentive packages for the textile sector, and initiatives to promote exports to other Latin American countries.
The 50% tariff imposed by the US, which came into effect on August 27, has come as a shock to many industries. It is projected to reduce the country’s exports from USD 87 billion to USD 50 billion, posing a serious threat to the stability and competitiveness of Indian industries. This development is also expected to have a direct impact on employment opportunities. The textile sector in Tamil Nadu, one of the country's leading contributors, is particularly under threat following this steep increase in tariffs, he said.
Although the Union Government has highlighted several measures, such as the simplification of GST, provision of financial assistance, and efforts to explore new export markets in Latin America, industrialists remain dissatisfied. They argue that the government has yet to take a concrete policy decision in response to the crisis. Expressing fears of significant losses, Panneerselvam urged the Centre to act swiftly to support the industry and shield it from the ongoing challenges.