The Federation of Indian Chambers of Commerce and Industry (FICCI) has appealed to the United States to rethink its plan for a uniform tariff on Indian imports. FICCI emphasized that a targeted, evidence-based strategy would be more effective in combating forced labor concerns than a blanket tariff covering all sectors. At a US Trade Representative hearing, FICCI representative Poornima Shenoy highlighted Indian businesses’ commitment to eradicating forced labor from global supply chains.
Shenoy underscored that Indian industries have heavily invested in responsible sourcing, supply chain diligence, and compliance with environmental, social, and governance standards. She argued against the proposed 12.5% tariff, stating that it fails to consider the diverse nature of supply chains and compliance mechanisms across different sectors. Shenoy stressed the importance of a focused, risk-based approach over a broad, economy-wide tariff to achieve the goal of eliminating forced labor effectively.
FICCI also rejected claims that India lacks robust labor protections, citing the country’s comprehensive legal framework safeguarding labor rights. Shenoy pointed out that Indian exporters to the US already adhere to stringent compliance systems mandated by American companies and global brands. She cautioned that additional tariffs could lead to unintended consequences for both Indian exporters and US businesses, ultimately increasing costs for American consumers.
Shenoy highlighted the mutually beneficial economic partnership between India and the US, emphasizing the importance of maintaining legitimate trade flows. She urged the USTR to reconsider the proposed tariffs in light of India’s existing legal safeguards, industry compliance mechanisms, and the potential impact on bilateral trade relations.
