In his letter, Stalin pointed out that Tamil Nadu — which accounts for 28% of India’s textile exports and employs nearly 75 lakh people in the sector — is disproportionately vulnerable because of its heavy dependence on the US market. Nearly 31% of the state’s $52.1 billion goods exports went to the US in FY25, compared to 20% of India’s overall exports.
Stalin warned that the tariff burden could have significant implications for Tamil Nadu’s manufacturing sector and employment, with an estimated 30 lakh textile jobs at immediate risk. “Any export slowdown will quickly result in mass layoffs as these are labour-intensive industries,” he cautioned.
Beyond textiles, other labour-intensive sectors such as apparel, machinery, auto components, gems and jewellery, leather, footwear, marine products, and chemicals are also vulnerable to tariff shocks, he noted.
Based on consultations with industry bodies, the Chief Minister stressed that the textile sector urgently needs support on two fronts – correction of the GST inverted duty structure for the man-made fibre value chain by bringing the entire chain under a uniform 5% GST slab and exemption of import duty on all varieties of cotton to improve cost competitiveness.
He further called for additional relief measures, including extension of 30% collateral-free loans under ECLGS with a 5% interest subvention, a two-year moratorium on principal repayment, enhanced RoDTEP benefits to 5%, and expanded pre- and post-shipment credit to cover all textile exports.
Stalin also urged the Centre to consider a special financial relief package similar to COVID-era support, alongside faster Free Trade Agreements (FTAs) and bilateral deals to offset global trade risks.
Drawing a parallel with Brazil, which recently announced tax deferrals and credits for exporters, Stalin pressed for urgent intervention at the national level. “Tamil Nadu’s thriving manufacturing sector is facing an unprecedented crisis, threatening millions of livelihoods across various sectors. I request your immediate intervention in consultation with the relevant ministries and stakeholders,” he wrote.
