'Millions of jobs at risk': TU leaders, economists slam Modi govt’s response to US tariff shock

By A Representative 

Marking one month since the United States imposed a steep 50% tariff on nearly half of India’s exports, trade unions, public intellectuals and industry representatives came together at a public discussion organised by the National Alliance of People’s Movements (NAPM) and the National Alliance for Justice, Accountability and Rights (NAJAR). The event, held on September 14 under the theme “Trump’s Tariffs and Indian Workers: Impact, Challenges and Way Ahead,” strongly criticised both the US government’s “hostile” action and what participants described as the Indian government’s “shameful inaction” in the face of the crisis.

The tariffs, imposed as ‘punishment’ for India’s continued purchase of Russian oil, have hit sectors employing an estimated 80–85 million workers, including textiles, gems and jewellery, carpets, leather, marine products, chemicals and auto components. Export hubs such as Tiruppur, Ludhiana, Surat, Bhadohi and Agra have seen mass layoffs as firms struggle with cancelled orders, unsold inventories and rising debt. Reports suggest lakhs of workers are being forced to migrate back to their villages and search for lower-paid work.

Professor Arun Kumar, noted economist and retired JNU professor, said the measures had laid bare the vulnerabilities of India’s economic model. “For decades, successive governments have pushed export-oriented growth at the cost of building a strong domestic market. What we are witnessing now is the fragility of that approach. A single hostile action by the US has thrown millions into uncertainty,” he remarked.

Clifton D’Rozario, National Vice-President of the All India Central Council of Trade Unions, accused the Modi government of capitulating to Washington. “This government projected itself as standing tall on the global stage, but when it came to defending Indian workers, it surrendered. The tariffs were a direct attack on India’s sovereignty, and yet the government has only made concessions, from ending duties on cotton imports to agreeing to buy more US goods,” he said.

Geetha Ramakrishnan of the National Federation of Unorganised Sector Workers highlighted the cascading effects on informal labour. “These tariffs are not just about big factories. The entire chain—from home-based workers and dyeing units to micro enterprises—is collapsing. Our workforce has been left exposed because policies have never prioritised security for informal workers,” she noted.

From the industry side, K.E. Raghunathan, Chairman of the Association of Indian Entrepreneurs, expressed alarm at the scale of the disruption. “MSMEs are already on the edge. If the government’s relief measures focus only on protecting larger corporates, the smaller players will be wiped out. What we need is immediate credit support and interest subvention for small firms,” he urged.

Thomas Franco, former General Secretary of the All India Bank Officers Confederation, criticised the government for prioritising corporate interests over worker protection. “The so-called comprehensive package being discussed excludes blue collar workers entirely. Industry leaders talk about ‘rationalising the workforce,’ which is just a euphemism for throwing people out of jobs while lobbying for subsidies,” he said.

Vahidha Nizam, National Secretary of the All India Trade Union Congress, pointed to the wider shifts in US-India relations. “This is not only about tariffs. The H1B visa restrictions and the proposed HIRE Act will hit Indian IT workers hard. Blue collar and white collar workers alike are under attack, while the Indian leadership is busy courting the same forces that are hurting our economy,” she said.

The NAPM, in its statement, condemned the “imperialist onslaught on India’s working classes” and demanded immediate income protection for affected workers and their families, as well as relief for MSMEs. It called for a shift in India’s economic policies away from export-dependence toward strengthening the domestic market and urged the government to realign foreign policy with countries of the global south.

“The benefits of discounted Russian oil never reached the people. Refiners like Reliance reaped windfall profits while workers are now paying with their jobs. This is the true hallmark of Modi’s economic policy—privatised gains and socialised losses,” the statement said.

As participants stressed, the crisis has underscored both India’s economic fragility and the need for worker unity. “Capitalists and the state rely on the fragmentation of workers to push through regressive measures like increased working hours,” NAPM warned, calling on unions across sectors to mobilise and demand fairer policies.

Issued by the National Alliance of People’s Movements, the statement urged immediate protective measures for workers, support for small businesses, and a radical rethinking of India’s development trajectory. “This is a wake-up call,” the organisers said. “India must break from its dependence on imperial powers and chart a people-centred path of self-reliance.”