Chennai, Feb 3 (.) The Tamilnad Mercantile Bank (TMB) on Tuesday said
the recent India-US trade agreement, which has led to a significant rollback
of punitive tariffs and reduced US duties on Indian goods to a more competitive
level, is a watershed moment for export oriented sectors like textiles and
apparel.
Indian Textile exports to the US were under pressure due to the tariff overhang,
impacting clusters such as Tiruppur and other MSME hubs, TMB MD and CEO
Salee Nair said in a statement here.
“With these barriers now easing, we expect a revival in export demand, healthier
order pipelines and improved pricing power for exporters”, he said.
This is likely to translate into higher working capital requirements, capacity
expansion and greater demand for structured trade finance and credit support
from the banking system.
For banks like TMB, with deep-rooted relationships in textile and MSME clusters
across Tamil Nadu, this creates an opportunity to support sustainable growth
through timely credit, export finance and supply chain solutions, he said.
When viewed alongside agreements such as the India EU deal, these developments
strengthen India’s export ecosystem and align well with the Viksit Bharat 2047 vision
of a globally competitive, manufacturing led economy, he added.
. GV 1430