Leader of Opposition in Lok Sabha, Rahul Gandhi has raised tough questions to the Central Government regarding America’s decision to increase the tariff on Indian products by 50 percent. He says that this decision can have a direct impact on India’s exports and employment, especially on those sectors where a large number of workers work. Rahul Gandhi asked the government to clarify whether any formal assessment of the impact of this tariff increase has been done or not.
He asked the Commerce and Industry Minister what impact this decision has had on labor-intensive industries like textiles, leather and gems and jewellery. Also wanted to know that if the government has not done any study till now then why it was not done despite such a big business change.
Questions raised regarding impact on exports and employment
Rahul Gandhi also asked in his questions as to how much India’s export value has declined due to American tariffs and what impact it has had on employment. He also raised the issue of what preparations the government has made to protect domestic industries if India imposes retaliatory tariffs. His argument was that making policy without solid evaluation could be risky.
Government’s stand: Keep an eye on exports, not decline but growth
In response to these questions, Union Minister of State for Commerce and Industry Jitin Prasad said that the government constantly monitors India’s exports. He told the Lok Sabha that there has been no decline in India’s total merchandise exports during the period from April to October in the current financial year. According to government data, India’s exports stood at $252.66 billion in April-October 2024, while it increased to $254.25 billion in April-October 2025. The government says that these figures show that despite global challenges and American tariffs, India’s exports currently remain balanced and strong.
Government’s preparation to deal with American tariffs
Jitin Prasad said that the government is working at many levels to reduce the impact of American tariffs. Emphasis is being laid on providing financial assistance, policy support and access to new markets to exporters. The government believes that it is necessary to diversify exports instead of depending on just one market.
Export Promotion Mission and Financial Assistance
The government has made a huge financial provision for the coming years under the Export Promotion Mission. The objective of this scheme is to provide affordable financial facilities especially to small and medium enterprises and make them competitive in the global market. Through this, help is also being provided in branding, packaging, logistics and compliance with international standards.
Credit guarantee and RBI relief
The government has also strengthened the credit guarantee system for exporters, so that they can get loans without additional guarantees. Apart from this, the Reserve Bank of India has also taken some steps to provide relief to the affected exporters, which include relaxation in loan repayment and extending the period of export credit.
Focus on FTA and new markets
The government says that free trade agreements are being better used to reduce dependence on America. India has already signed FTAs and PTAs with many countries and negotiations on new agreements are going on. With this, Indian products are expected to get new possibilities in markets like Europe, Asia and the Gulf.
Dialogue and export diversification efforts
The government has also made it clear that continuous talks are being held with the industry, export councils and state governments. The objective is to minimize the impact of changes in global trade on Indian industry and employment. The arguments of the government and the opposition amid the debate on US tariffs show that this issue is not only related to trade, but also to employment and economic stability.
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