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19 Dec 2025·Source: The Indian Express
2 min
EconomyInternational RelationsPolity & GovernanceNEWS

Stalin Urges PM Modi to Shield Apparel Exports from US Duty Hikes

Tamil Nadu CM Stalin warns PM Modi about US import duties impacting apparel exports, citing Trump's potential return.

Stalin Urges PM Modi to Shield Apparel Exports from US Duty Hikes

Photo by Keagan Henman

Tamil Nadu Chief Minister M K Stalin has written to Prime Minister Narendra Modi, expressing concern over potential US import duty hikes on apparel and textile products. Stalin highlighted that such measures, especially if Donald Trump returns to power, could severely impact India's apparel export sector, particularly Tamil Nadu, which accounts for 40% of the nation's apparel exports.

He urged the Union government to engage with the US, EU, UK, Canada, Australia, and Japan to secure favorable trade terms and protect the livelihoods of millions dependent on the textile industry. This situation underscores the vulnerability of India's export-oriented industries to global trade policy shifts and the need for proactive diplomatic and economic strategies.

मुख्य तथ्य

1.

TN CM Stalin writes to PM Modi regarding US import duties on apparel

2.

Tamil Nadu accounts for 40% of India's apparel exports

3.

20% of India's textile exports are from TN

UPSC परीक्षा के दृष्टिकोण

1.

Impact of global trade policies on domestic industries

2.

Role of state governments in advocating for economic interests at the national level

3.

India's trade relations and diplomatic strategies with major economies (US, EU, UK, Canada, Australia, Japan)

4.

Vulnerability of export-oriented sectors to external shocks

5.

Government schemes and policies for the textile and apparel sector (e.g., PLI, PM MITRA)

दृश्य सामग्री

Tamil Nadu's Dominance in India's Apparel Exports (2025)

This map highlights Tamil Nadu's critical role in India's apparel export sector, accounting for 40% of the nation's total. Key textile hubs within the state are marked, illustrating the geographical concentration of this industry and its vulnerability to global trade policy shifts.

Loading interactive map...

📍Chennai📍Coimbatore📍Tiruppur
और जानकारी

पृष्ठभूमि

India's textile and apparel sector is one of the oldest and largest industries, contributing significantly to GDP, employment, and foreign exchange earnings. Tamil Nadu is a major hub, accounting for a substantial portion of the nation's apparel exports. Historically, global trade policies, including quotas (like the Multi-Fibre Arrangement until 2005) and tariffs, have shaped its trajectory. Post-MFA, the sector faced increased competition but also opportunities for growth.

नवीनतम घटनाक्रम

The current concern stems from potential protectionist trade policies, particularly from the US, which is a major export market for Indian textiles. The possibility of higher import duties (tariffs) under a new US administration, as highlighted by CM Stalin, poses a significant threat to the sector's competitiveness and the livelihoods it supports. This necessitates proactive diplomatic engagement and strategic economic measures by the Indian government.

बहुविकल्पीय प्रश्न (MCQ)

1. Consider the following statements regarding India's Textile and Apparel Sector: 1. India is the second-largest producer of cotton globally. 2. The sector is the largest employer in India after agriculture. 3. The Production Linked Incentive (PLI) scheme for Textiles aims to promote the manufacturing of Man-Made Fibre (MMF) apparel and technical textiles. Which of the statements given above is/are correct?

उत्तर देखें

सही उत्तर: D

Statement 1: India is indeed the second-largest producer of cotton globally, after China. Statement 2: The textile sector is a significant employer, second only to agriculture, providing employment to millions. Statement 3: The PLI scheme for Textiles, approved in 2021, specifically targets MMF apparel, MMF fabrics, and technical textile products to boost domestic manufacturing and exports. All three statements are correct.

2. In the context of international trade, which of the following statements correctly describes the potential impact of an import duty hike by a major importing country on an exporting country's economy? 1. It typically leads to an increase in the exporting country's trade surplus with the importing country. 2. It can reduce the competitiveness of the exporting country's goods in the importing market. 3. It may encourage the exporting country to diversify its export markets and product base. Select the correct answer using the code given below:

उत्तर देखें

सही उत्तर: B

Statement 1: An import duty hike makes the exporting country's goods more expensive, thus reducing demand and likely leading to a decrease, not an increase, in trade surplus. So, 1 is incorrect. Statement 2: Higher duties directly increase the price of imported goods, making them less competitive against domestically produced goods in the importing market. So, 2 is correct. Statement 3: Facing reduced demand or higher costs in one major market, an exporting country would naturally seek to reduce its reliance on that market by exploring new markets or developing new products. So, 3 is correct.

3. Which of the following is NOT a common trade remedy available under the World Trade Organization (WTO) framework to address unfair trade practices or unforeseen surges in imports?

उत्तर देखें

सही उत्तर: D

Anti-dumping duties (A), Countervailing duties (B), and Safeguard measures (C) are all recognized trade remedies under WTO agreements. They are tools countries can use to protect domestic industries from unfair competition (dumping, subsidies) or unforeseen import surges. Preferential trade agreements (D), such as Free Trade Agreements (FTAs) or Comprehensive Economic Partnership Agreements (CEPAs), are mechanisms to reduce tariffs and non-tariff barriers between specific countries, but they are not 'trade remedies' in the sense of addressing unfair practices or surges. They are instruments of trade liberalization, not protection against unfair trade.

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