The Indian government currently has no plans to increase duties on gold and silver imports, according to a government source. This clarification comes amid growing concerns over import duties after Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases for the next year to protect foreign exchange reserves.
US Trade Talks on the Horizon
On the trade front, US officials are expected to visit India for trade discussions, though specific dates have not yet been finalized. The source informed Reuters that talks with the United States are likely to cover all pending issues, including the Section 301 investigation into India. However, a trade deal with the US is not anticipated until the USTR Section 301 probe is completed.
India Rejects US Allegations
India has strongly refuted allegations made by the US Trade Representative in its investigations concerning excess structural capacity and production involving several countries, including India. New Delhi stated that the initiation notice failed to provide a “cogent rationale” to substantiate the claims. India has formally requested that the USTR issue a negative determination regarding India and terminate the investigation against it, as per a submission from New Delhi to the USTR.
Background of US Investigations
On March 11, the United States announced the initiation of investigations against its trading partners, including India, China, Japan, and the European Union. These investigations aim to examine and address “unfair foreign practices” that adversely impact American manufacturing. This development comes weeks after an Indian delegation visited the US for trade deal talks, with US Trade Representative Jamieson Greer describing New Delhi as a ‘tough nut to crack’. The delegation had traveled to the US to continue discussions on the first tranche of the India-US trade deal, first announced by Donald Trump and PM Modi in February this year.
Proposed Interim Trade Deal
Under the proposed interim trade deal, the US has lowered 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.
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