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Tamilaga Vettri Kazhagam (TVK) chief Vijay has urged both the central and state governments to take "wartime measures" to protect exporters in Tamil Nadu who have been hit hard by the 50 per cent tariffs imposed by the US on Indian imports.
Calling the situation "unprecedented," Vijay said exporters, particularly in textiles, auto components, gems and jewellery, and pharmaceuticals, were "on the verge of giving up their businesses".
He accused the Centre of failing to shield industries from global shocks and faulted the state government for “stopping with only advertisements about investment, without offering genuine relief”.
The new tariff regime, in effect since August 27, comes at a time when India’s economy is growing at 6.5 per cent — the fastest among major economies.
However, economists warn the 50 per cent levy could shave 0.3–0.5 percentage points off GDP, threaten up to 2 million jobs, and deepen financial stress for exporters.
Vijay outlined a set of demands aimed at cushioning exporters from the tariff shock.
These include the creation of an Export Stabilisation Fund, wage protection for workers, subsidised loans for vulnerable industries, and a two-year moratorium on MSME loan repayments.
He also called for a 5 per cent interest subsidy scheme, reintroduction of the Emergency Credit Line Guarantee Scheme, and the removal of import duties on cotton and other raw materials.
“The government must build an economic shield around our industries. Without urgent action, Tamil Nadu’s exporters will collapse under the weight of unfair global politics,” he said.
Experts point out that while exports to the US make up about 2.3 per cent of India’s GDP, the burden is uneven.
“70 percent of India’s exports to the US, worth around USD 55 billion, are now under serious threat,” said Aastha Gudwani, India Chief Economist at Barclays.
Despite the disruption, the Reserve Bank of India (RBI) has maintained its growth forecast at 6.5 per cent for 2025–26, signalling confidence in domestic demand to absorb the shock.
But exporters warn that unless relief comes swiftly, the pain will spread across supply chains.
"TVK will fight relentlessly in every forum until the voices of Tamil Nadu’s industries and workers are heard at the highest levels of decision-making," Vijay vowed.
Tamil Nadu will be going to the Assembly polls next year with Vijay's party TVK also throwing its hat in the ring. The major battle, however, is expected to be seen between the ruling DMK, the AIADMK and the BJP.
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Published On:
Aug 31, 2025