- Tirupur and Coimbatore's MSME and textile sectors face threat after US tariff hike
- 50% tariff imposed by Donald Trump to affect Indian exports to the US market
- Coimbatore MP Ganapati Rajkumar urges government for relief similar to COVID measures
The MSME and textile industry in Tamil Nadu's Tirupur and Coimbatore could face a wipeout, with the 50 per cent tariff imposed by Donald Trump kicking in. Tirupur and Coimbatore depend enormously on exports, most of which go to the US. The prospect of a new export policy or the government's assurance that negotiations are on with the US and the matter is likely to be resolved, has done little to assure the industrialists in the area.
Their concerns were reflected by Coimbatore MP Ganapati Rajkumar, who, in an exclusive interview to NDTV, sought relief from the government as happened "during Covid".
Asked what would be his message to the government on this issue, the DMK MP told NDTV, "The message is they should take it very seriously -- like how the government came down to help during the COVID times, reducing interest and giving more time for payment regarding the banks, etc".
This, he said, will be of great help for the industrialists in this area.
"Otherwise, if the Central government does not have any serious plans, this will have a very huge impact in the economy of this region and entire India , because Tirupur players are major players in exporting. So this will have an impact throughout India," he added.
The industrialists in the area have already sought "immediate help regarding the banking sector", he said, in terms of time for payment and some leniency.
Last month, US President Donald Trump had announced reciprocal tariffs of 25 per cent that came into effect on August 7. Then he imposed another 25 per cent over India's purchase of Russian oil, bringing the total to 50 per cent.
One of the worst-hit of this double tariff is expected to be the MSME and the textile industries, which could lose the price war with cheaper products from China, Bangladesh and Vietnam.
Besides negotiations with the US and a fresh export policy, the government is hoping the domestic market will help absorb the impact.
Prime Minister Narendra Modi has called upon people to be "vocal for local" and said Swadeshi should be their life's mantra.
