April 20, 2026
Trade & Market

India Urges US To Drop Section 301 Investigation

India has strongly opposed the ongoing Section 301 investigation initiated by the United States Trade Representative into alleged forced labour practices, asserting that the probe lacks legal basis and fails to identify any specific policy or practice within the country that could lead to such violations.

In its formal submission to the United States Trade Representative, New Delhi argued that the investigation does not meet the statutory requirements under Sections 301 and 302, and has called for a negative determination leading to its termination. The government maintained that, in the absence of clearly established links between policy and alleged labour violations, the probe unfairly shifts the burden of proof onto India.

The rebuttal includes a detailed sector-wise response, with a particular focus on textiles. India emphasised that its textile exporters do not depend on cotton sourced from high-risk regions such as Xinjiang, and highlighted that imports of man-made fibres and accessories particularly from China are largely buyer-driven and subject to strict compliance standards set by global brands.

On the legal front, India pointed out that existing US provisions, including Section 307 of the Tariff Act, already prohibit imports linked to forced labour, making the parallel Section 301 investigation unnecessary. It further stated that there is no evidence to suggest Indian exports derive any unfair competitive advantage from such practices.

The development comes ahead of the next round of bilateral trade agreement (BTA) negotiations, with the Indian delegation led by Darpan Jain scheduled to visit Washington for the first in-person discussions. India has reiterated its willingness to engage constructively with the US through consultations, while urging that concerns be addressed within the framework of bilateral trade talks rather than unilateral action.

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