Archive · 24 Jan 2026
US Tariffs Threaten Indian Textile Jobs
Indian textile companies are worried because the US has put high taxes (tariffs) on their products.
This means American buyers are ordering less from India, which could lead to many people losing their jobs.
Some people, like former RBI Governor Raghuram Rajan, blame the Indian government for not managing relations with the US well.
Others, like Akhilesh Mishra, defend the government and say the tariffs are a result of US policy.
The government has tried to help by making some changes, but the companies say this isn't enough.
Political leaders are also talking about this problem, with some blaming the government for not doing enough to protect these jobs.
Sustained US tariffs threaten India's textile market share and jobs, with exporters warning of permanent damage.
Tamil Nadu's Tiruppur cluster, exporting Rs 14,000 crore annually to the US, is severely impacted.
US buyers are canceling orders due to 50% tariffs, with no capacity for further price absorption.
Government measures include easing raw material duties, but exporters seek immediate protective measures.
A 50% tariff could cause a $6.6 billion (67.8%) fall in US demand for Indian textiles, with significant job losses.
- Who
- Indian textile exporters, workers, and political figures like Raghuram Rajan and Akhilesh Mishra
- What
- Potential job losses and market share decline due to US tariffs, and a political debate over the government's handling of the situation
- When
- Ongoing, with immediate impact and political discussions in January 2026
- Where
- India, particularly Tamil Nadu's Tiruppur textile cluster, and political discussions on social media and in the Congress party
- Why
- Sustained 50% US tariffs on Indian textiles without a trade deal, and political differences over the government's response
Critics of Government
Government Supporters
Cause of Tariffs
Critics of Government
Critics like Raghuram Rajan blame the government for not managing diplomatic relations effectively, questioning the strength of the Modi-Trump friendship.
Government Supporters
Supporters like Akhilesh Mishra argue that the tariffs are a result of US policy and not the government's fault, defending India's strategic autonomy.
Impact on India
Critics of Government
Rajan suggests that the high tariffs indicate a lack of trust and could have long-term economic consequences.
Government Supporters
Mishra claims that Rajan is exaggerating the impact and using the situation for political gain, arguing that India's sovereignty is more important.
Government's Response
Critics of Government
Critics argue that the government has not done enough to mitigate the impact of the tariffs on the textile industry.
Government Supporters
Supporters defend the government's measures, such as easing raw material duties, and argue that the government is prioritizing India's strategic interests.
- Annual Exports to US
- Rs 14,000 crore
- Current Tariff Rate
- 50%
- Projected Demand Fall
- $6.6 billion (67.8%)
- Sector Employment
- 4.5 crore jobs
- Domestic Input Sourcing
- 90%
- Pakistan's Tariff Rate
- 19%
Sources
'Haven't Even Spoken About Tariffs': Rahul Gandhi's 'Dead Economy' Jab At Centre
Jobs at risk, irreversible market loss if US tariffs continue: Textile exporters in missive to Vice President
Rahul Raises Textile Sector Concerns, Calls on Modi to Act
Union Min Giriraj Singh lashes out at Rahul Gandhi over remarks on textile sector
‘Industry will shut down’: Rahul Gandhi flags US tariff impact in textile factory video
‘4.5 crore jobs and lakhs of businesses are at stake’: Rahul Gandhi slams PM Modi over US tariffs
AEPC chairman urges Centre to introduce Focus Market Scheme for apparel exports to the US
