- Indian industry bodies will appear before the US Trade Representative on July 8 to contest allegations.
- The US is considering new tariffs on Indian goods under its Section 301 investigation.
- Industry groups deny forced labour claims, citing India's regulatory and business practices.
India's leading industry bodies are set to appear before the Office of the United States Trade Representative on July 8 to challenge allegations of forced labour and industrial overcapacity, as the US considers imposing fresh tariffs on Indian goods under its Section 301 investigation.
Industry associations, including the Confederation of Indian Industry, the Federation of Indian Chambers of Commerce and Industry, the Automotive Component Manufacturers Association of India and representatives from the spices sector, have made submissions contesting the allegations, sources told NDTV Profit.
The industry bodies are expected to argue that forced labour is not an inherent feature of Indian manufacturing and that the claims do not reflect the country's regulatory framework or business practices. They are also likely to challenge assertions related to industrial overcapacity, maintaining that India's production ecosystem operates on market-driven demand and remains globally competitive.
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The move comes after the Indian government formally disputed the US findings on forced labour and overcapacity during the ongoing Section 301 investigation. The USTR is examining whether to impose trade measures, including additional tariffs, following a Section 301 probe.
The process has gained significance after the US administration turned to Section 301 as an alternative route for trade action, following legal setbacks to its reciprocal tariff policy in the US courts, including rulings that limited the implementation of those duties.
The July 8 hearing is expected to provide Indian industry an opportunity to directly present its case before US trade authorities, as Washington weighs its next steps on potential tariff measures targeting Indian exports.
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