NEW DELHI (Diya TV) — India will push back against a proposed U.S. tariff on its exports next week. Government officials and major industry groups plan to argue that the U.S. findings on forced labor lack strong evidence and do not meet the legal standards under U.S. trade law. They also warn that the proposed measure could hurt supply chains that connect the world’s largest and fifth-largest economies.
The challenge will take place before the Office of the U.S. Trade Representative’s Section 301 Committee on July 8 and July 9. The hearings come after the U.S. Trade Representative proposed an additional 12.5% tariff on imports from India under a Section 301 investigation. The investigation examines whether countries prohibit and enforce restrictions on imports made with forced labor.
India’s Ministry of Commerce and Industry strongly rejects the proposal. The ministry says India already has a strong legal framework that bans forced labor and protects workers. It also argues that the U.S. failed to provide enough evidence to prove that India’s policies harm American commerce, which is a key requirement under Section 301.
Several Indian industry organizations will also defend the country’s position during the hearings. Representatives from the Federation of Indian Chambers of Commerce and Industry, the Confederation of Indian Industry, the Agricultural and Processed Food Products Export Development Authority, and the Automotive Component Manufacturers Association will present their arguments before the committee.
The Confederation of Indian Industry says India’s labor laws meet international standards. The group points to Article 23 of the Indian Constitution, which bans forced labor. It also highlights the Bonded Labour System (Abolition) Act, the Child Labour (Prohibition and Regulation) Amendment Act, and the four labor codes adopted between 2019 and 2020.
In addition, the industry group says listed companies follow Environmental, Social and Governance reporting rules as well as Business Responsibility and Sustainability Reporting requirements. It also notes that India has ratified key International Labour Organization conventions against forced labor and child labor.
Furthermore, the group disputes several examples used in the U.S. report. It says India did not import rice from Myanmar or tobacco from Malawi during the 2021-2025 review period. Therefore, it argues that those examples do not prove any connection between Indian imports and forced labor.
The group also highlights trade data on cotton. It says India imported about $1.537 billion worth of U.S. cotton between 2021 and 2025. That amount was nearly twice the value of cotton imports from China. As a result, the organization argues that there is no evidence that India’s import policies unfairly burden U.S. businesses.
At the same time, the Confederation of Indian Industry says industries such as forgings, foundries, and agricultural machinery depend on advanced technology and skilled workers. Because of that, it argues that forced labor does not fit the way these industries operate. It also says exporters already follow strict compliance systems required by American buyers.
The group warns that the proposed tariff would increase costs for U.S. manufacturers that rely on Indian products. Instead, it urges both countries to work through the India-U.S. Trade Policy Forum to improve compliance and strengthen cooperation.
Meanwhile, the Federation of Indian Chambers of Commerce and Industry has also opposed the proposed tariff. The organization says Indian exporters already follow strong compliance systems that include supplier checks, product traceability, independent audits, and responsible sourcing practices. Therefore, it believes broad tariffs would raise prices for American companies and consumers while disrupting stable supply chains.
The Agricultural and Processed Food Products Export Development Authority will defend India’s rice exports during the hearings. The agency says India’s rice industry does not use forced labor or import materials produced through forced labor. It also says Indian rice exports follow recognized global standards.
Likewise, the Automotive Component Manufacturers Association has asked the U.S. Trade Representative to exempt automotive parts from any additional duties. The association says India’s auto component industry follows established labor laws and compliance systems. It also warns that higher tariffs could disrupt integrated manufacturing networks, increase production costs, and create sourcing challenges for U.S. automakers.
The Section 301 investigations cover 60 economies. The reviews focus on whether countries ban imports made with forced labor and enforce those rules effectively. The U.S. Trade Representative says weak enforcement creates unfair competition for American businesses.
However, India maintains that its Constitution, labor laws, regulatory system,m and corporate compliance programs already provide strong protection against forced labor. The country also argues that the proposed tariff lacks legal support and could weaken the growing trade partnership between India and the United States.
