India has strongly opposed the Section 301 investigation of the United States, rejecting allegations of unfair trade practices and demanding an immediate end to the investigation.In its application submitted to the US Trade Representative (USTR), India has “strongly denied all allegations made in the preliminary notice” related to claims of excess structural capacity and production in manufacturing sectors, PTI reported. “Without identifying any specific action, policy, or practice of the Government of India, the preliminary notice is based on aggregate macroeconomic indicators that could be considered ‘unfair or discriminatory’ and which ‘burdens or restricts United States commerce’ as per section 301(b) of the Act,” the submission said. India said the notice did not provide any “concrete arguments” or prima facie evidence to support the allegations that the country has structural excess capacity leading to a trade surplus with the US. “India believes that the current investigation does not meet the requirements for initiation of this investigation in accordance with Sections 301 and 302 of the Trade Act of 1974. India calls on the USTR to make a negative decision and immediately terminate the investigation.” The government also urged that trade concerns should be addressed through ongoing bilateral talks rather than unilateral measures, noting that both countries are engaged in discussions for a bilateral trade agreement. “India remains willing to engage constructively with the United States in the underlying investigation, including any consultations,” it said. Separately, responding to another Section 301 investigation launched on March 12 over alleged failure to take action against forced labour, India said it did not meet the legal requirements to initiate the investigation. “India requests the USTR to take a negative decision and terminate the investigation against India. Additionally, India stands ready to engage constructively with the United States in the underlying investigation, including any consultations,” the submission said. The Ministry of Commerce and Industry has filed a reply on behalf of the government. On March 11, the USTR launched an investigation into the policies and industrial practices of 16 economies, including India, China, Japan, and the European Union, to investigate “unfair foreign practices” affecting American manufacturing. A day later, on March 12, the USTR launched a broad investigation covering 60 economies, including India and China, to assess whether their practices related to forced labor imports are unfair or discriminatory and restrict US commerce. India said its submissions represent a public, non-confidential summary of its reply, while the full version has been filed separately as confidential.
