Trade Talks Continue: India Rejects Reports Of US Deal Hold-Off

New Delhi: The Indian government has denied reports that it is halting a trade deal with the US, calling such claims "incorrect and misleading". According to reports, the Commerce Ministry has reiterated that India and the United States remain engaged in discussions for a mutually beneficial trade agreement. 

Sources claimed that the reports of a hold-off emerged after the US launched a fresh investigation, labelling allegations of unfair trade practices by several countries, including India. The probe, initiated under Section 301 of the US Trade Act, focuses on structural excess capacity and production in manufacturing sectors. The central government has maintained that talks are ongoing, and there is no pause in the ongoing bilateral engagement. The clarification of the Government of India comes amid rumours that India might delay signing a trade deal with the US due to the new US investigation.

"We have noted a media report regarding ongoing trade talks with the US. It is denied that there is any hold-off in bilateral engagement. It is reiterated that the two sides remain engaged for a mutually beneficial trade agreement," the Commerce Ministry said in a statement. The US had earlier agreed to cut tariffs on Indian imports from 50% to 18% as part of an interim trade deal. However, the recent US probe has introduced new uncertainty, with some sources suggesting India might adopt a "wait-and-watch" approach.

US Ambassador to India, Sergio Gor, has expressed confidence that India will honour its commitments. "So we fully expect the nations that we've made deals with to honour those deals," he said, adding that it's a "win-win situation" for both countries. 

Further details regarding the ongoing development of the India-US trade deal are awaited.