FM Nirmala Sitharaman Meets Textile Exporters in Chennai, Assures Relief Measures

Union Finance Minister Nirmala Sitharaman met leading textile exporters in Chennai on Wednesday to discuss the deepening crisis faced by the sector following the recent hike in U.S. import tariffs.

During the meeting, Sitharaman assured industry representatives that the Centre is actively working on relief measures to ease the burden on exporters.

Exporters’ Demands

Exporters requested the creation of a special relief fund covering 10% of Freight on Board (FOB) value, which they believe will provide immediate cash flow support. According to the Tiruppur Exporters’ Association (TEA) and other industry bodies, nearly ₹4,500 crore worth of goods are currently stuck in the pipeline, with an expected direct loss of ₹1,100–1,200 crore if shipments remain delayed.

Current Challenges

The textile industry, particularly hubs in Tiruppur and Coimbatore, has been hit hard by the 50% U.S. tariff on Indian textile exports. Many exporters reported cancelled orders, delayed payments, and rising input costs, leaving thousands of jobs at risk.

Government Response

FM Sitharaman said the government is engaging closely with exporters and will announce support measures soon. Exporters hope relief will be rolled out within the next 1–2 weeks, as delays could worsen financial stress in the sector.

Why It Matters

Tamil Nadu accounts for nearly 28% of India’s textile exports, making it a critical contributor to the country’s foreign trade. Any disruption in this sector not only impacts exporters’ margins but also threatens employment in one of India’s largest labor-intensive industries.

The Road Ahead

Exporters remain cautiously optimistic that the government’s intervention will ease liquidity pressure and help them remain competitive in global markets. The outcome of this engagement will be crucial for sustaining India’s textile exports during a period of heightened trade challenges.