**Title:** Tamil Nadu Exporters Urged to Receive Urgent Government Support
**Meta Description:** TVK chief Vijay calls for immediate government action to support Tamil Nadu exporters facing challenges from US tariffs.
**URL Slug:** tamil-nadu-exporters-government-support
**Headline:** Tamil Nadu’s Exporters Face Crisis: TVK Chief Calls for Urgent Government Action
In a pressing appeal, Tamilaga Vettri Kazhagam (TVK) chief Vijay has urged both the central and state governments to implement “wartime measures” to safeguard Tamil Nadu’s exporters, who are grappling with the severe impact of a 50 percent tariff imposed by the United States on Indian imports. Describing the current situation as “unprecedented,” Vijay highlighted that exporters in key sectors such as textiles, auto components, gems and jewellery, and pharmaceuticals are nearing the brink of abandoning their businesses.
Vijay criticized the central government for its inability to protect industries from global economic shocks and accused the state government of merely promoting investment through advertisements without providing substantial relief. The new tariff regime, effective since August 27, coincides with India’s economy growing at a rate of 6.5 percent, the fastest among major economies. However, economists warn that the 50 percent tariff could reduce GDP growth by 0.3 to 0.5 percentage points, jeopardize up to 2 million jobs, and exacerbate financial stress for exporters.
To mitigate the impact of these tariffs, Vijay proposed several measures aimed at supporting exporters. These include establishing an Export Stabilisation Fund, providing wage protection for workers, offering subsidized loans to vulnerable industries, and instituting a two-year moratorium on MSME loan repayments. He also called for a 5 percent interest subsidy scheme, the reintroduction of the Emergency Credit Line Guarantee Scheme, and the elimination of import duties on cotton and other raw materials.
“The government must create an economic shield around our industries. Without immediate action, Tamil Nadu’s exporters will be crushed by the weight of unfair global politics,” Vijay stated. Experts note that while exports to the US account for approximately 2.3 percent of India’s GDP, the burden is disproportionately heavy. “Seventy percent of India’s exports to the US, valued at around USD 55 billion, are now under serious threat,” remarked Aastha Gudwani, Chief Economist at Barclays.
Despite the challenges, the Reserve Bank of India (RBI) has maintained its growth forecast at 6.5 percent for 2025-26, indicating confidence in domestic demand’s ability to absorb the shock. However, exporters caution that without prompt relief, the repercussions will ripple through supply chains.
Vijay affirmed, “TVK will relentlessly advocate in every forum until the voices of Tamil Nadu’s industries and workers are acknowledged at the highest levels of decision-making.” As Tamil Nadu prepares for Assembly elections next year, TVK is poised to play a significant role, with the political landscape expected to be dominated by the ruling DMK, the AIADMK, and the BJP.
**FAQ:**
**What measures is TVK proposing to support Tamil Nadu exporters?**
TVK is advocating for the establishment of an Export Stabilisation Fund, wage protection for workers, subsidized loans for vulnerable industries, and a two-year moratorium on MSME loan repayments, among other initiatives.