₹4,000 Crore Tamil Nadu Textile Exports to U.S. Hit by Challenges

Fast Summary

• ₹4,000 crore worth of garments and home textiles exported annually from Tiruppur and Karur in Tamil Nadu to the U.S. may face challenges due to new tariff changes announced by U.S. president Donald Trump.
• Tiruppur exports ₹2,000 crore worth garments annually; 30% of these go to the U.S., where basic products face competition from global manufacturers. Exporters with diverse markets may manage better than those reliant solely on the U.S. market.
• Buyers recently placed orders after inspecting manufacturing capabilities in Tiruppur but may negotiate harder due to increased tariffs. Exporters typically operate on profit margins of 5%-10%.
• Karur exports ₹2,000 crore worth home textiles annually (₹750 crore for holiday season),but faces limitations competing with ChinaS production scale and range,especially in kitchen linen made from manmade fibers. The slow American retail market adds further challenges for Indian exporters there.
• Suggestions for government action include financial support measures such as restoring interest subvention schemes and facilitating access to raw materials at globally competitive prices as voiced by industry leaders like CITI chairman Rakesh Mehra.
• Challengers like Bangladesh have benefited from reduced tariffs (20%), creating additional disadvantages for India’s exporters striving for greater market share in the American textile and apparel sector.

Image included:
!