Explained : ‘Dead economy’: Rahul Gandhi says US tariffs are killing India’s textile jobs and Its Impact

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Congress leader Rahul Gandhi on Friday said India’s “dead economy” is being laid bare by steep U.S. tariffs that are hammering the textile sector, warning of job losses, factory shutdowns and shrinking orders as he pressed Prime Minister Narendra Modi to urgently secure a trade deal with Washington that protects Indian workers and businesses.

Sharing a video from his recent visit to a garment factory in Haryana, Gandhi said 50% U.S. tariffs and policy uncertainty are badly hurting textile exporters, pushing one of India’s largest employment generators into crisis.

“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 tweeted.

“Mr. Modi has offered no relief or even spoken about tariffs, even though more than 4.5 crore jobs and lakhs of businesses are at stake. Modi ji, you are accountable; please direct your attention to this matter,” Lok Sabha’s leader of opposition tweeted, using the hashtag TINA (There Is No Accountability).


In a pointed swipe, Gandhi said Modi must not allow his “own weakness” to hurt the economy any further, urging the government to prioritise a trade deal with the United States that puts Indian interests first.
Calling textiles the second-largest employer in India, Gandhi said the industry—globally admired for its craftsmanship—is now gripped by uncertainty. Alongside U.S. tariffs, exporters are grappling with falling prices in Europe and intense competition from Bangladesh and China, he said.The video shows Gandhi touring the factory floor, interacting with workers and management, and trying his hand at cutting cloth. He said the visit underlined the skill and resilience of Indian workers, adding that what they need is “genuine government support.”

It is imperative that India secures a U.S. trade deal that puts Indian businesses and Indian workers first, Gandhi said.