India urges WTO to act on trade barriers amid tariff dispute with the US

India has renewed calls to reform global trade rules, urging the World Trade Organization (WTO) to address non-tariff barriers (NTBs), discipline non-market economies, and restore its paralysed dispute resolution system.

The appeal came as Commerce and Industry Minister Piyush Goyal represented India at an informal WTO mini-ministerial in Paris this week, hosted by Australia on the sidelines of the OECD Ministerial Council Meeting. It comes amid escalating trade tensions with the United States over its recent 26 per cent tariff on Indian goods.

India’s message at the WTO

As quoted by PTI, Goyal told the gathering that the WTO must act against distortions caused by non-market economies and eliminate NTBs that restrict access for developing nations. He also reiterated India’s call to revive the WTO’s appellate body, which has remained non-functional since 2009 due to the US blocking appointments.

He emphasised the importance of retaining special and differential treatment for developing countries and said the organisation must uphold commitments made in previous ministerial conferences.

The meeting, held behind closed doors, was attended by ministers from around 25 WTO member nations, including Australia, Singapore, Nigeria and France, as well as WTO Director-General Ngozi Okonjo-Iweala.

India responds to US tariffs

India’s remarks come against the backdrop of recent tariff action by Washington. In April 2025, the US imposed a 26 per cent tariff on a wide range of Indian exports, citing national security and alleged unfair trade practices — a move that drew criticism from New Delhi.

According to ANI, India responded by lodging a formal protest with the Office of the United States Trade Representative and initiating consultations under WTO provisions. Officials also warned of reciprocal measures if the duties were not withdrawn.

On 9 May, India submitted a note to the WTO characterising the US tariffs as “safeguard measures” and stated that they affect Indian exports worth $7.6 billion, with around $1.91 billion collected in duties. India proposed equivalent retaliatory tariffs, although it did not specify the products concerned.

As per Reuters, the United States dismissed India’s claims in its response on 23 May, stating that the Section 232 tariffs were imposed on national security grounds and arguing that India did not follow the procedural requirements for such a challenge.

India–US trade talks continue despite tensions

Despite friction, both sides remain engaged in trade talks. As reported by PTI, Goyal said India and the US are committed to resolving differences and are working towards a comprehensive bilateral trade agreement.

The deal aims to settle long-standing tariff disputes, improve market access for Indian pharmaceuticals, textiles and services, and increase bilateral trade. The US is India’s largest trading partner, while India is the US’s tenth-largest.

US Commerce Secretary Howard Lutnick expressed optimism during the US-India Strategic Partnership Forum’s summit on 2 June. As quoted by ANI, he said that negotiators have “found a place that really works for both countries” and added that a deal could come “in the not-too-distant future”.

He noted that India could gain by concluding an early agreement. “Earlier countries get a better deal — that’s the way it is,” he said, referencing the 90-day reciprocal tariff pause that is set to expire in July.

OECD cuts global growth forecast, warns of tariff risks

The Organisation for Economic Co-operation and Development (OECD), in its latest Economic Outlook released on 3 June, downgraded its global growth forecast due to heightened trade tensions.

According to Reuters, the OECD now projects the global economy will expand by just 2.9 per cent in both 2025 and 2026, compared to its previous forecast of 3.1 per cent and 3.0 per cent, respectively. It warned that increased protectionism could fuel inflation and depress investment.

The report offered a relatively optimistic forecast for India. It projected that the Indian economy will grow by 6.3 per cent in FY2026 and 6.4 per cent in FY2027. The OECD said benign inflation, tax cuts, a stronger labour market and increased public investment are expected to support consumption and capital formation. However, it cautioned that US tariffs would likely impact Indian export competitiveness.