“With 31 per cent of Tamil Nadu’s goods exports destined for the US market, these measures affect the State more severely than most others, with significant implications for manufacturing and employment,” State Finance Minister Thangam Thennarasu said.
Among the major sectors, textiles is the most affected. As Tamil Nadu accounts for 28% of India’s textile exports and provides employment to more than 75 lakh workers, this is a matter of national concern, he said.
If the situation continues, an estimated 30 lakh jobs are at immediate risk, with many MSME units facing closure, the Minister said.
He sought support package for the textile sector, including measures such as interest subvention, targeted subsidies, export incentives, and appropriate tax relief, to protect employment and maintain export competitiveness.
Thangam Thennarasu said the recent GST rate rationalization has further affected State revenues.
“For, Tamil Nadu alone, the estimated revenue loss in the current financial year is about Rs 10,000 crore,” he said and urged for a compensation mechanism.
Thennarasu also urged the Union Government to merge all such cesses and surcharges with the basic rates of taxation to ensure that States receive their rightful share in the Country’s revenues.
He said the Union Government has been continuously shifting the burden of Centrally Sponsored Schemes on to the State Governments and also sought for release of funds under various schemes.
He also requested the Union Government to reconsider the proposals and accord approval for the metro rail projects in Madurai and Coimbatore, besides seeking other railway and road projects.
