MP Su. Venkatesan seeks relief for MSMEs hit by U.S. tariffs, urges RBI to ease NPA norms

MP Su. Venkatesan urges relief for Tamil Nadu's MSMEs impacted by U.S. tariffs, seeking RBI intervention on NPA norms.

Su. Venkatesan, Member of Parliament, has written a letter to Union Finance Minister Nirmala Sitaraman, seeking relief for MSMEs affected by the additional import tariffs levied by the United States. “Many MSMEs are under severe distress due to the additional import tariffs imposed by the U.S., which may consequently result in NPAs [Non-Performing Assets] arising from non-payment of their bank dues,” he said.

Citing reports, he said that the imposition of higher tariffs by the U.S. will have serious adverse implications for MSMEs, which contribute nearly 45% of India’s total exports. “Sectors such as textiles, seafood, and gems and jewellery — which together account for about 25% of India’s total exports to the U.S. — are expected to be hit particularly hard, as MSMEs hold more than a 70% share in these industries. The chemicals sector is also under strain, with MSMEs contributing around 40% of exports of it,” he added.

Mr. Venkatesan pointed out that the impact is severe in Tamil Nadu, a major exporter of textiles, where the majority of units belong to MSMEs. “They are now facing a sudden build-up of stock due to postponed deliveries, following instructions from their overseas customers. The entire supply chain — from spinning to garmenting — has been disrupted for over a month owing to the uncertainties created by this tariff war. Finding alternative export markets within a short span is extremely challenging,” he said.

He requested Ms. Sitharaman to intervene and advise the RBI to relax the norms, directing banks not to classify MSME dues as NPAs during this crisis.