‘The state governments of Gujarat, Maharashtra and Tamil Nadu will be encouraged to consider measures of their own as the employment and economy in such export-oriented states will be affected.’
Kindly note the image has been posted only for representational purposes.
IMAGE: Workers unload sacks of sugar to be loaded onto a cargo ship at the Deendayal port in Kandla, Gujarat. Photograph: Amit Dave/Reuters
The commerce and industry ministry is set to reach out to export-oriented states such as Gujarat, Maharashtra and Tamil Nadu, urging them to support labour-intensive sectors hit by the 50 per cent tariff imposed by the US government.
Exporters have warned that the US tariff hike poses a setback, affecting nearly 55 per cent of India’s shipments to the American market.
Apparel and leather exporters are expected to be the worst hit, particularly as this is the period when orders for the festival season are typically placed.
“While the Centre is already exploring options to support exporters, the state governments of Gujarat, Maharashtra and Tamil Nadu will also be encouraged to consider measures of their own as the employment and economy in such export-oriented states will be affected,” a government official said, requesting anonymity.
“We will soon be writing to these states in this regard,” the official added.
The top five exporting states — Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh — together accounted for around three-fourths of India’s total merchandise exports of $437 billion in FY25.
In FY25, Gujarat’s exports were led by petroleum products ($43.9 billion), followed by engineering goods ($16.6 billion), gems and jewellery ($8.3 billion), and textile ($5.6 billion).
Maharashtra’s shipments were dominated by engineering goods ($22.5 billion), along with gems and jewellery ($13.7 billion), chemicals ($8.1 billion), agricultural products ($5.4 billion), and textile ($3.8 billion).
Tamil Nadu’s top export items included engineering goods ($18.1 billion), electronic goods ($14.6 billion), textile ($8 billion), and leather and leather products ($1.6 billion).
The central government is working on a three-pronged strategy to cushion exporters from the impact.
One plan involves launching a sector-specific support scheme under the proposed Rs 2,250 crore (Rs 22.50 billion) Export Promotion Mission.
The other measures include identifying alternative overseas markets for surplus products and redirecting them to meet domestic demand.
Against this backdrop, the Union textile ministry reopened the production-linked incentive scheme for the textiles sector, inviting fresh applications in response to industry requests.
Feature Presentation: Ashish Narsale/Rediff
