India Rules Out Gold, Silver Import Duty Hike Ahead of US Trade Talks

The Indian government does not intend to raise import duties on gold and silver, a government source confirmed to Reuters, amid efforts to stabilise the country's foreign exchange reserves. Prime Minister Narendra Modi had earlier urged citizens to limit non-essential gold purchases for one year to curb import pressures and support the rupee.

US officials are expected to travel to India for bilateral trade talks, though no dates have been finalised, the source said. The discussions are likely to cover all pending trade issues, including the ongoing USTR Section 301 investigation into India's industrial practices, which New Delhi has formally opposed.

India has submitted a formal response to the USTR, rejecting allegations of structural overcapacity in its manufacturing sector and demanding a negative determination and termination of the probe. New Delhi argued the investigation lacked a cogent rationale and sufficient evidence.

The USTR launched the probe on March 11 against several trading partners, including India, China, Japan, and the EU, citing unfair foreign practices affecting US manufacturing. The US has already reduced tariffs on certain Indian goods from 50% to 18% under an interim arrangement, following a 25% reciprocal tariff and a separate 25% penalty linked to India's Russian oil imports last year.

The court will resume hearing on Tuesday.