Rahul Gandhi blames Prime Minister Narendra Modi for job losses and exporter distress after US tariffs hit India’s textile sector

New Delhi: Congress leader and Leader of Opposition in the Lok Sabha Rahul Gandhi on Friday intensified his criticism of Prime Minister Narendra Modi, citing the impact of steep US tariffs on India’s textile sector and alleging government inaction amid job losses and exporter uncertainty.
Addressing the issue through a post on X, Rahul Gandhi said that a 50 per cent tariff imposed by the United States was severely affecting India’s textile exporters. He claimed that job losses, factory shutdowns and reduced export orders were becoming increasingly common, describing the situation as evidence of what he termed a “dead economy”.
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Gandhi held the Prime Minister accountable for the situation, alleging that the government had neither offered relief nor publicly addressed the concerns of the textile industry despite the scale of the impact. He said that more than 4.5 crore jobs and lakhs of businesses were at risk due to the trade uncertainty, and urged the Prime Minister to intervene.
The Congress leader’s remarks followed earlier comments in which he echoed US President Donald Trump’s criticism of India’s economy. Gandhi has repeatedly blamed the Modi government’s policies for economic slowdown, pointing to demonetisation, the rollout of the Goods and Services Tax (GST), challenges faced by MSMEs, and stagnation in job creation. In previous statements, he alleged that these factors had damaged growth and harmed small businesses and farmers.
Gandhi has also argued that the slowdown was visible to the public but ignored by the government’s leadership, including the Prime Minister and the Finance Minister. His remarks have consistently triggered sharp political reactions.
Responding to the allegations, the Bharatiya Janata Party rejected claims of decline in the textile industry. Union minister Giriraj Singh said the sector was expanding and accused the Congress leader of spreading misinformation. Citing export figures, Singh said textile and garment exports had increased between April–December 2024 and April–December 2025, and claimed that employment and investment in the sector had grown over the past decade.
The exchange highlights the intensifying political debate over economic performance, trade policy, and employment ahead of key political milestones, with the textile sector emerging as a focal point in the broader argument over India’s economic direction.
Published: 23 Jan 2026, 06:38 pm IST
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