FM Sitharaman chairs textile industry representatives' meet on economic challenges

Chennai, Sep 2 (PTI) Union Finance Minister Nirmala Sitharaman chaired an interactive meeting with the representatives of the textile industry here on Tuesday in the backdrop of economic challenges affecting the sector, including concerns over the US tariff of 50 per cent.

India’s textile exports (to the US) accounted for 28 per cent (USD 11 billion) of the sector’s total exports, Federation of Indian Export Organisation (FIEO) represented by P Gopalakrishnan, Regional Chairman, FIEO (SR), said.

He sought financial relief measures, export incentives, GST support, working capital solutions, and urgent relief announcements.

The USA remains India's largest export market for textiles and apparel exports.

"The finance minister assured that the government is actively working on these issues and exporters can expect support measures shortly," Gopalakrishnan said.

Apparel, Made-Ups Home Furnishing Sector Skill Council (AMHSSC) India chairman A Sakthivel submitted a memorandum to Sitharaman seeking immediate financial relief measures to address the recent challenges arising from the reciprocal tariff imposed by the USA.

"Responding, the finance minister said the government is actively working on the requests and would announce suitable relief measures soon," Sakthivel, who participated in the Textile Industry Associations and Export Promotion Councils’ interactive meeting, said.

The AMHSSC has called for the reintroduction of the Focus Market Scheme for the US market, restoration of the Interest Equalisation Scheme, grant of a two-year moratorium with reclassification of NPA norms, and taking up with the US authorities the request for exemption of Indian garments manufactured using US cotton imports.

BJP’s Tamil Nadu state chief Nainar Nagenthiran and BJP national women’s wing president and Coimbatore South MLA Vanathi Srinivasan, too, participated.

Recently, Chief Minister M K Stalin had claimed that the US tariff hike to 50 per cent has severely affected the state’s exports, impacting about Rs 3,000 crore to Tiruppur, besides putting thousands of jobs at risk.

He demanded the Union government to introduce a relief and structural reforms package to safeguard the industries and workers.

Makkal Needhi Maiam (MNM) party founder and MP Kamal Haasan has appealed to the Centre and state governments to come forward to immediately provide relief to the Indian exporters. PTI JSP JSP KH