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Key Points

Tiruppur's massive knitting industry is facing serious challenges due to new US tariffs. Industry leaders are urgently seeking government support to weather this economic storm. Workers report production slowdowns and fear potential job losses if the situation continues. Both state and central governments are being called upon to provide immediate financial relief and negotiate a solution.

Key Points: Tiruppur Knitwear Industry Seeks Govt Aid Amid US 50% Tariff Crisis

  • US 50% tariff severely impacts Tiruppur's Rs 15,000 crore exports to America
  • Industry holds 68% share of India's knitted garment exports worldwide
  • Exporters request fiscal support and interest-free loans from government
  • Production slowing down with potential job losses if crisis continues
3 min read

Tiruppur's knitting industry seeks govt support, as US's 50 per cent tariff affects its export prospects

Tiruppur's Rs 45,000 crore export industry faces severe impact from US tariffs. Industry leaders and workers seek government support to prevent job losses and sustain production.

"We are with the central government, and we are confident that the central government and the US government will resolve this issue very soon - Tirukumaran, General Secretary of Tiruppur Exporters Association"

Tiruppur, September 3

As the US's 50 per cent tariff on India is severely affecting the export prospects of the thread and knitting industry based in Tamil Nadu's Tiruppur, the labour-intensive industry is seeking support from the Central and the state governments to weather the crisis.

"Tiruppur's exports are worth Rs 45,000 crores globally, with Rs 15,000 crores of that going to the US. We hold a 68% share of India's knitted ready-made garment exports. We are now severely impacted by the tariffs, "Tirukumaran, General Secretary of Tiruppur Exporters Association, told ANI.

He said that since the US's 50 per cent tariff came into effect, many orders from US buyers are on hold, and some are asking for discounts, as the high tariff is not viable for them.

"We have requested the central government and Finance Minister Nirmala Sitharaman for help, as Tiruppur is largely affected. The tariff impact has just started. It will take another month to know the real impact of the tariff," he said.

"Currently, there is no job loss, and we are continuing with our work. We are continuing the production and are trying to ship out the goods at a discount. For that, we are requesting fiscal support from the government... We completely understand, and we are with our government. Any trade negotiation takes a little bit of time, and we should never compromise on our core interests. We are with the central government, and we are confident that the central government and the US government will resolve this issue very soon," he added.

Viswanathan, Managing Director of Prosper Exports, told ANI that both the central and State governments must come together to find a solution.

"Due to the 50% tax imposed by the US, we are facing a severe impact. We currently export about 10% of our production to the US, and it has now become a burden for us. Almost all export manufacturers in Tiruppur are primarily dependent on the US market; everyone is affected. Both the Central and State governments must come together and find a solution. It would be very helpful if we were provided with interest-free loans," he said.

Thangaraj, a worker at a knitting factory in Tiruppur, told ANI that the production at his factory has slowed.

"I have been working in Tiruppur for the past 10 years. At present, due to the US tax imposition, production has slowed down. If this situation continues, jobs will be at risk. As far as Tiruppur is concerned, if one leaves this industry, there is no other alternative employment. Therefore, I request the Central and State governments to take appropriate action immediately," he said.

Meanwhile, on Tuesday, Tamil Nadu Chief Minister MK Stalin accused Prime Minister Narendra Modi of neglecting exporters hit by the 50 per cent tariffs imposed by the United States, saying industries in Tiruppur were suffering while Gujarat refineries benefited from cheap Russian oil.

On August 16, Stalin wrote to Prime Minister Narendra Modi, highlighting the considerable impact of the United States' tariffs on Tamil Nadu, including the threat of layoffs in export-oriented sectors, and urged the Centre to take immediate measures, including providing a special financial relief package to support exporters.

- ANI

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Reader Comments

P
Priya S
My uncle works in a Tiruppur export unit. They've already reduced overtime and are worried about job security. The government needs to act fast before this becomes a major employment crisis.
M
Michael C
While I understand the immediate need for support, we also need to diversify our export markets. Over-reliance on any single country makes us vulnerable to such trade policies.
Suresh O
The exporters' association is handling this maturely - supporting the government while seeking help. Interest-free loans and export incentives could really help bridge this difficult period.
A
Anjali F
It's disappointing to see political blame games when workers' livelihoods are at stake. Both state and central governments should work together instead of pointing fingers. 🙏
K
Karthik V
This is why we need stronger trade diplomacy. Our exporters shouldn't suffer because of political decisions. Hope our foreign ministry can negotiate better terms soon.

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