Stalin Urges Centre for Relief Package as US Tariffs Threaten Tamil Nadu Exports, Jobs

Tamil Nadu Chief Minister MK Stalin voiced concern regarding the effect of US tariff on Indian exports. He also called for a special financial relief package from the Centre.

In a letter to Prime Minister Narendra Modi, he stated that repayment of the principal sum in the package must be suspended for a while. He appreciated the Central Government's efforts to have a mutually favorable trade agreement with the US. He also extended full support to the government's position to safeguard the national interests of the nation.

Stalin said that in the last financial year, India exported a total of $ 433.6 billion worth of goods. Of this, the US had a share of 20 percent. At the same time, 31 percent of Tamil Nadu's total goods export of $ 52.1 billion was exported to the US. He told PM Modi that this high dependence on the US market means that the impact of tariffs on Tamil Nadu will be far greater than on other Indian states. The tariffs will have a significant impact on the state's manufacturing sector and employment scenario.

The most affected sectors are textiles, apparel, machinery, auto components, gems and jewellery, leather, footwear, marine products and chemicals, all labour-intensive sectors where any slowdown in exports will result in large-scale layoffs. He said the southern state is projected to contribute 28 per cent of the country's textile exports in 2024-2025, making it the largest contributor among all Indian states. He said the sector employs around 75 lakh people and with the proposed 50 per cent tariff, an estimated 30 lakh jobs are at immediate risk.