The Confederation of Indian Industry (CII) has asked the United States Trade Representative (USTR) to consider cooperative approaches rather than imposing additional tariffs on Indian imports to tackle forced labor concerns. Speaking at a Section 301 public hearing, CII emphasized that punitive trade measures could disrupt the rapidly growing US-India economic partnership without effectively resolving the underlying issues.
Shuchita Sonalika, presenting CII’s position, highlighted the mutual benefits of the bilateral trade relationship and urged the USTR to strengthen collaboration through existing platforms like the India-US Trade Policy Forum rather than resorting to tariffs. She cautioned that proposed duties, including a suggested 12.5 percent tariff, would not achieve their intended objectives and risk harming both economies.
CII advocates for compliance-based cooperation as a more practical alternative to broad trade restrictions. This approach, Sonalika argued, fosters responsible business practices while maintaining trade flow and economic growth. She referenced the Confederation’s ongoing partnerships with the International Labour Organization (ILO) and the United Nations Development Programme (UNDP) as evidence of Indian industry’s commitment to ethical standards and forced labor elimination.
The testimony underscored Indian companies’ robust compliance frameworks, incorporating corporate codes of conduct, supplier standards, ethics policies, and environmental, social, and governance (ESG) criteria. Additionally, regulatory measures such as the Securities and Exchange Board of India’s Business Responsibility and Sustainability Reporting (BRSR) framework for large enterprises and the simplified BRSR Lite for smaller firms further reflect structured efforts toward transparency and sustainability.
Responding to questions from the USTR, Sonalika maintained that exempting Indian exports from extra duties would incentivize cooperative reforms among countries under forced labor scrutiny, contrasting punitive tariffs that risk alienating key partners. She invited deeper engagement between Indian industry and US authorities to enhance and build upon existing compliance systems, centering collaboration over confrontation.
While affirming India’s full support for the eradication of forced labor in supply chains, the CII position stresses that cooperation and dialogue offer the most viable path forward for sustainable improvements, preserving the positive momentum in the US-India trade relationship.