Congress Calls Modi-Made ‘MEGA’ a ‘MAHA Headache’ as U.S. Tariffs Take Effect

The Congress party has sharply criticized the Modi government over India’s trade and export strategy following the imposition of additional tariffs by the United States. Jairam Ramesh, Congress general secretary in-charge communications, labeled the government’s flagship “MEGA” initiative a “MAHA headache” for India’s economy, saying the timing and impact of the tariffs underscore policy shortcomings.

Background on U.S. Tariffs

The U.S. administration, under President Trump, has imposed what Ramesh called “double tariffs” on selected Indian products. These additional duties primarily target labour-intensive sectors, such as textiles, handicrafts, and other export goods, which form a significant part of India’s overseas shipments to the U.S.

The tariffs have gone into effect from August 27, 2025, and the Congress party has warned that the economic repercussions could be severe if not addressed promptly.

Congress Criticism of Modi Government

Jairam Ramesh highlighted that the government’s trade policies, including the MEGA (Make in India, Export Growth Accelerator) program, have been superficial and insufficiently thought out. He said:

“The MEGA initiative was designed to boost exports, but with the Trump double tariff now in effect, it has ironically become a MAHA headache for India’s export-dependent industries.”

The opposition stressed that labour-intensive sectors, which employ millions of Indians, are most vulnerable. They called for immediate policy interventions to protect these sectors and negotiate relief measures with the U.S.

Economic Implications

• Exports Impacted: Labour-intensive goods such as textiles, garments, and handicrafts are expected to face higher costs and reduced competitiveness in the U.S. market.

• Employment Risks: Many small and medium-sized enterprises (SMEs) dependent on exports could experience job losses or reduced production.

• Policy Reforms Needed: Opposition leaders argue for revising trade strategies, strengthening export incentives, and exploring alternative markets to offset the impact of U.S. tariffs.

Government Response

While the Modi government has not issued an official comment on Congress’s criticism, officials have indicated that India is engaging in diplomatic talks with U.S. authorities to mitigate the impact of tariffs and ensure continuity of exports.

Broader Trade Context

The imposition of U.S. tariffs is part of a broader global trade tension scenario, where nations are recalibrating their export policies and addressing trade imbalances. Analysts say that India’s reliance on the U.S. market makes it vulnerable to external policy changes, emphasizing the need for diversified export markets and stronger bilateral negotiations.

Conclusion

The Congress party’s remarks underscore a growing concern in India’s political and economic circles regarding the impact of foreign tariffs. As U.S. duties take effect, sectors reliant on exports are expected to feel immediate pressure. Opposition leaders like Jairam Ramesh insist that the Modi government must act decisively to protect India’s labour-intensive industries and safeguard employment.

The coming weeks will test India’s trade resilience and diplomatic strategy as the country navigates the complexities of global tariff regimes while trying to maintain steady export growth.

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