Rahul Gandhi flags ‘job losses’ from US tariffs, mentions ‘dead economy’ again

Leader of Opposition Rahul Gandhi on Friday accused the Narendra Modi government of failing to protect India’s textile sector from the impact of steep US tariffs, claiming that exporters are facing job losses, factory shutdowns and shrinking orders.

“50% US tariffs and uncertainty are badly hurting India’s textile exporters. Job losses, factory shutdowns and reduced orders are a reality of our ‘dead economy’,” Gandhi said in a statement.

He alleged that the PM had “offered no relief or even spoken about tariffs”, despite what he said were over 4.5 crore jobs and lakhs of businesses at stake. “Modi ji, you are accountable; please direct your attention to this matter,” he added.

The government, however, has maintained that it is actively engaging with exporters and taking a multi-pronged approach to mitigate the impact of US tariff measures on Indian textiles and apparel.

In December 2025, the Ministry of Textiles told Parliament that it was in regular consultation with exporters, including MSMEs, across states to assess the impact of US tariffs and other challenges. Minister of State for Textiles Pabitra Margherita said the government was pursuing “a comprehensive strategy” to support exporters and safeguard India’s trade interests.

According to Margherita, the measures include sustained engagement with the US administration for a mutually beneficial India-US Bilateral Trade Agreement, trade relief steps through the Reserve Bank of India, a Credit Guarantee Scheme for Exporters, and export promotion initiatives such as the new Export Promotion Mission. The government is also working on boosting domestic demand through next-generation GST reforms and expanding market access via new free trade agreements while improving utilisation of existing FTAs.

India’s textiles and apparel exports (excluding handicrafts) stood at $32.56 billion during January–November 2025, registering a marginal growth of 0.26% over the corresponding period of the previous year.