“Dead Economy” Claim as Rahul Gandhi Targets Centre Over Tariff Impact

New Delhi: Leader of the Opposition and Congress MP Rahul Gandhi on Friday launched a sharp attack on the central government, accusing it of ignoring the impact of international tariffs on India’s economy and claiming that the country’s textile sector is facing a serious crisis. He alleged that exporters are being pushed to the brink while the Prime Minister has not addressed the issue publicly.
Gandhi shared a video on social media platforms showing his visit to a garment manufacturing unit in Haryana, where he interacted with a factory owner about the challenges facing the industry. The businessman highlighted that textiles are among India’s most labour-intensive sectors and employ the second-largest workforce after agriculture. He spoke of growing uncertainty over tariffs, intense price competition, and shrinking margins, warning that excessive tariff pressure could force units to shut down.
According to the factory owner, the industry is struggling to survive in a highly competitive global market. He said Indian businesses face higher borrowing costs and more complex operational challenges compared to countries like China, making it harder to sustain production and growth. He also pointed out that exporters are now operating on minimal cash flows, with reduced orders and limited capacity to stock goods in advance, unlike earlier years when large international orders provided stability.
In his remarks, Gandhi said the textile and garment sector is being squeezed from multiple directions, including high US tariffs, declining prices in European markets, and stiff competition from countries such as Bangladesh and China. He warned that the pressure is already translating into job losses, falling procurement, and factory closures, creating instability across the entire value chain.
He further stated that millions of jobs and countless small and medium businesses are at risk if the situation is not addressed urgently. Calling for decisive action, Gandhi said India must secure a trade arrangement with the United States that protects domestic businesses and workers.
Accusing the central government of failing to provide relief or policy clarity, Gandhi said the issue reflects a larger problem of economic management and accountability. He urged the Prime Minister to directly address the tariff challenge and its impact on employment and industry, saying the future of a crucial sector of the Indian economy is at stake.