India urges US to drop forced‑labour tariffs and pursue cooperation

India’s industry body, the Confederation of Indian Industry, testified before the U.S. Trade Representative, urging Washington to address forced‑labour concerns through cooperation and compliance mechanisms rather than a 12.5% tariff on Indian imports. The CII highlighted India’s existing legal framework, internal safeguards, and reporting requirements such as the Business Responsibility and Sustainability Reporting (BRSR) system, arguing that unilateral duties would penalise a compliant industry and raise costs for American manufacturers.

Indian officials also said the USTR’s Section 301 investigation lacks sufficient evidence and is inconsistent, noting that about 1,600 items have been exempted while the tariff proposal remains broader. They called for negotiations instead of unilateral measures.

A State Bank of India research report on the same dispute advised India to keep the dialogue with the United States warm, avoid public escalation, and make limited, reversible offers to test Washington’s resolve, emphasizing the long‑term strategic value of the India‑US partnership.

Overall, India maintains that forced labour has no place in trade, but prefers bilateral engagement over punitive tariffs.