A high-level parliamentary committee, consisting of 16 Members of Parliament, conducted crucial discussions with industrialists from the key manufacturing hubs of Coimbatore and Tirupur on Thursday. The delegation, chaired by MP Dola Sen, sought first-hand accounts of the severe challenges triggered by the recent 50% increase in US tariffs on various Indian goods.
Committee's Nationwide Fact-Finding Mission
The parliamentary standing committee embarked on a detailed assessment tour, visiting major industrial centers including Visakhapatnam and Chennai since January 6. Their mission to Coimbatore marked a focused effort to understand the ground realities faced by exporters, particularly in the textile and engineering sectors. Upon arrival at the Coimbatore International Airport, chairperson Dola Sen outlined the panel's objective to evaluate the broader trade relations between India and the United States.
"The main objective is to know the extent of damage caused by the tariff hike and understand other economic challenges," Sen stated. She revealed that the team had already engaged with the automobile and leather industries in Chennai and would now concentrate on the textile industry's plight in the Coimbatore region.
Industry Voices Highlight Critical Challenges
Later in the day, the MPs held a detailed consultation meeting with industry representatives at a private hotel in Neelambur. The discussions centered on the slowdown in exports, implications of new trade agreements, and difficulties in fulfilling existing orders under the new tariff regime.
Dr. A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), presented a stark picture of the situation. He emphasized the disastrous impact of the higher US tariffs, which create a huge tariff differential compared to competing nations. This disparity, he explained, has placed Indian apparel exporters in an untenable position.
Substantial Discounts and Threat of Job Losses
Dr. Sakthivel detailed that to maintain long-standing trade relationships and retain buyers, Indian exporters are being compelled to offer substantial discounts, often incurring losses. This unsustainable practice, if continued without government intervention, poses a severe threat to the industry's viability.
He issued a grave warning, stating that if the current tariff regime persists and the government does not announce a relief package, the sector could witness significant job losses. The feedback gathered by the parliamentary committee is expected to form the basis of recommendations to the central government for potential policy interventions and support measures to safeguard India's export interests and employment in these critical industrial clusters.
