Chennai, Aug 7 Tirupur's garment exporters have expressed deep concern over the US' recent decision to impose an additional 25 per cent tariff on Indian goods, effectively increasing the total export duty to 50 per cent.
Industry leaders fear that this move could severely dent the export potential of India's knitwear hub, with projected losses estimated at around Rs 12,000 crore.
K.M. Subramanian, President of the Tirupur Exporters' Association (TEA), said the sharp increase in duties will raise the prices of Indian garments in the US market, impacting trade flows and competitiveness.
"With prices of Indian goods rising in the US due to these duties, trade is expected to suffer significantly," Subramanian said in a statement.
He termed the US decision "unacceptable" and urged the Indian government to intervene at the diplomatic level.
"The Centre should initiate immediate talks with the US administration to resolve the issue. These tariffs will not only affect Indian exporters but will ultimately hurt American consumers," he added.
Explaining the implications, Subramanian said that garments priced at Rs 100 in the US market could now cost as much as Rs 150 due to the tariff hike, making them unaffordable to many buyers.
This could result in a sharp decline in orders for Indian knitwear, which forms the backbone of Tirupur's economy.
He also cautioned that rival exporting nations like Bangladesh could gain a competitive edge in the American market by offering cheaper alternatives, potentially diverting global orders that would typically be routed to Indian manufacturers.
Despite the looming crisis, Subramanian was optimistic about the domestic employment situation in Tirupur.
He assured that jobs in the knitwear sector are unlikely to be affected immediately, thanks to the recently signed duty-free trade agreement with the United Kingdom.
"The UK deal offers a ray of hope. It could not only help maintain current employment levels but also attract additional orders from European countries, providing a boost to production and job creation," he said.
Tirupur, known as the knitwear capital of India, contributes significantly to the country's textile exports.
The sudden tariff hike by the US has triggered widespread anxiety among stakeholders, who now look to New Delhi for swift and effective diplomatic engagement to safeguard the interests of the sector.
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