Stalin wrote a letter to PM Modi, concerned about the impact on Tamil Nadu from American tariff

Chennai
Tamil Nadu Chief Minister MK Stalin has written a letter to Prime Minister Narendra Modi on 50 percent US tariffs. He has expressed concern over the serious effects of tariffs. Also, the Chief Minister of Tamil Nadu urged the Prime Minister to take steps to restore business in view of the impact on the state’s industrial area. In the letter, Chief Minister MK Stalin appreciated the efforts being made by the Government of India towards a mutual beneficial trade agreement between India and the US. He has also clarified that the Tamil Nadu government fully supports the status of the Central Government to protect national interests.

However, expressing his concerns, MK Stalin wrote in the letter, “He wants to draw the Prime Minister’s attention to a worrying issue in Tamil Nadu, which is facing serious impacts due to the current tariff growth.” He reported that in the last financial year, 20 percent of India’s total trade exports of $ 433.6 billion went to the US, while 31 percent of the total goods worth $ 52.1 billion of Tamil Nadu were exported to the US.

He further said that because Tamil Nadu is highly dependent on the American market, the tariff will have more impact on Tamil Nadu than other states of India. This will also adversely affect the manufacturing sector and employment of Tamil Nadu. MK Stalin wrote in the letter, “Textile, apparel, machinery, automobile, gems and jewelery, leather, shoes, sea products and chemicals have been the most affected by this tax. It is even more worrying that all these sectors are labor-dominated industries and any recession will reduce large scale jobs.” He said that the textile industry, which is 28 percent of India’s exports in the region and employs about 75 million people in the state, is particularly facing serious threat. Officials estimate that if the tariff is doubled to 50 percent, 30 million people are in danger of losing their jobs.

The Chief Minister has mentioned in his letter that he has held extensive discussions with the industry bodies of the affected areas and can say on the basis of these consultations that the textile sector needs immediate action on two fronts. He has sent some recommendations to the Central Government, including changes in GST rates, import duty discount on cotton, relief under emergency loan guarantee scheme (ECLGS), and demand to expand credit facilities. MK Stalin has requested the central government to launch a special interest assistance scheme for tariffs affected by tariffs, to speed up free trade agreements (FTAs) to compensate for market risks and announce a financial relief package similar to the prohibition of covid-time on payment of principal.

Stalin called upon the Prime Minister to intervene immediately in consultation with ministries and industry stakeholders. He has also assured the Central Government of Tamil Nadu’s full cooperation in implementing national level measures to protect livelihood and maintain the competitiveness of Indian exports.