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The Center has no plans to increase tariffs on gold and silver imports, according to a government source. This comes amid growing concerns related to import duties in the country after Prime Minister Narendra Modi urged people to avoid non-essential gold purchases over the next year to protect foreign exchange reserves.On the trade front, US officials are expected to visit India for trade talks, although dates are yet to be decided. The source told Reuters that talks with the United States are likely to include all outstanding issues, including the Section 301 investigation into India. However, a trade deal with the United States should not be expected until the USTR Section 301 investigation is underway.
Meanwhile, India has strongly rejected the US Trade Representative’s allegations in its investigations into structural overcapacity and production involving several countries, including India, stating that the notice of initiation has not provided “compelling justifications” to substantiate the claims.India has requested that the USTR issue a negative determination regarding India and end the investigation against it, according to a communication from New Delhi to the USTR.On March 11, the United States announced the initiation of investigations against its trading partners, including India, China, Japan and the EU, to investigate and address “unfair foreign practices” that negatively affect American manufacturing.This comes weeks after the Indian delegation’s visit to the United States to negotiate a trade deal concluded, with US Trade Representative Jamieson Greer describing New Delhi as a “tough nut to crack”. The delegation had traveled to the United States to continue discussions on the first tranche of the India-US trade deal, first announced by Donald Trump and Prime Minister Modi in February this year.Under the proposed interim trade deal, the United States has reduced tariffs on India from 50% to 18%. In August last year, Trump had imposed a 25% reciprocal tariff on India, along with an additional 25% penal tariff linked to India’s crude oil purchases from Russia.