New Delhi adopts a wait-and-watch stance as Washington’s Section 301 investigation complicates the path to an interim trade agreement.
India has chosen to pause its pursuit of a comprehensive trade agreement with the United States in response to a new investigation initiated by the Trump administration, Reuters reported. The probe, launched under Section 301 of the US Trade Act of 1974, targets what Washington describes as structural excess capacity and production in manufacturing sectors across 16 countries, including India.
Discussions that had appeared on track for an interim deal in March have now stalled as Indian officials weigh the implications of the inquiry and shifting US tariff policy. One government source stated that India is not in a hurry to sign any deal, describing the latest US action as a pressure tactic. New Delhi is now considering its options, including potential recourse to the World Trade Organisation.
US Ambassador to India Sergio Gor reiterated Washington’s expectation that India would honour prior commitments, calling the arrangement a win-win situation. Analysts have broadly supported India’s cautious approach, with Priyanka Kishore of Asia Decoded noting that it makes sense for India to slow down on trade talks given current uncertainty around tariff outcomes.
Source: Business Today / Reuters
