New Delhi, July 25 (IANS). The Central Government on Saturday said that India maintained constant contact with the US Trade Representative (USTR) throughout the investigation under Section 301 related to forced labour. As a result, in the final decision, India has been placed in the lower category of additional tariff, which will give comparative advantage to Indian exports in many key sectors.
The government also reiterated that it is committed to early finalization of the India-US Bilateral Trade Agreement (BTA) with the US.
USTR announced the final measures under Section 301 of the US Trade Act of 1974 on July 23.
These measures have been implemented after examining the policies and procedures of 60 economies, which includes India. This investigation was done on matters related to ban on import of goods manufactured with forced labor and its implementation.
USTR has decided to impose 10 percent additional ad valorem duty on imports from India. This is lower than the 12.5 percent additional duty proposed on June 2, 2026.
The Ministry of Commerce and Industry said in a statement, “The Government of India consistently maintained an active dialogue with the USTR during the investigation through detailed written submissions, personal level discussions and participation in public hearings. As a result of these sustained efforts, India has been placed in the lower category of additional tariffs in the final measures, which will provide comparative advantage to Indian exports in key sectors.”
The government said that a large part of India’s exports to the US, which currently do not attract any additional duty, will remain outside the scope of this 10 percent additional duty. These include generic pharmaceuticals, smartphones and some other specified products.
Apart from this, this additional 10 percent duty will not be applicable on steel, aluminum and auto parts already covered under Section 232.
The government said the duties imposed under Section 232 apply equally to almost all countries, with only a few limited exceptions.
Due to these exemptions, about 45 percent of India’s total exports to the US will remain out of the scope of additional 10 percent Section 301 duty.
At the same time, this additional 10 percent duty will be applicable on the remaining 55 percent of exports. However, the total tariff burden on India will be relatively low compared to most other economies under investigation.
The Government also pointed out that the textile-specific regime referred to in the final measures has yet to be established and implemented. India is in constant dialogue with the US on this issue during the ongoing negotiations under the India-US Bilateral Trade Agreement (BTA).
–IANS
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