India Inc urges US Trade Representative to drop tariff plan on Indian goods

New Delhi: Indian industry has urged the US Trade Representative (USTR) to reconsider its proposal to impose additional tariffs on most Indian goods under Section 301 of the US Trade Act, arguing that there is no credible evidence linking Indian production to forced labour and warning that punitive duties would disrupt resilient India-US supply chains.

In separate submissions to the USTR as part of the ongoing public hearing on the probe (July 7-9), industry bodies said the existing India-US Trade Policy Forum should be used to address concerns instead of imposing tariffs.

The Confederation of Indian Industry (CII) urged the USTR not to impose "any tariff or non-tariff measures" on Indian industry, while the Federation of Indian Chambers of Commerce and Industry (Ficci) sought reconsideration of the proposed duties in light of India's legal safeguards, industry compliance mechanisms and the potential impact on bilateral trade.


"There is no credible evidentiary basis linking Indian production to the use of forced labour inputs," CII said.

Ficci argued that the absence of a specific legislative mechanism cannot, by itself, establish that goods exported from India are produced using forced labour or that Indian supply chains pose a heightened risk.

"Applying a uniform tariff across all imports does not distinguish between supply chains that may warrant heightened scrutiny and those that already operate within well-established compliance systems," it said.