Detrimental For U.S. to Look To Punish India: Think Tank

Observing that there are at least half a dozen trade disputes between the two countries, including Special 301, WTO Dispute Settlement on India's Solar Mission and review of India's trade, investment and industrial policies, Rossow said other non-trade moves by the US are also lumped in with these actions by some Indian analysts, however unfairly.

These "non-trade" actions include the Federal Aviation Administration's downgrade of India's airline regulator and the Food and Drug Administration's ban on imports of generic pharmaceuticals from a few Indian producers.

While these are linked to India's non-compliance with specific targets instead of reactions to trade policies in India, they have also eroded the U.S.' image in India to some extent, Rossow said.

"While there is ample reason for each of these trade enforcement actions to be seriously considered, we must also recognise that negative reports and potential sanctions against India just after the election will paint the next government's perceptions about the United States," he said.

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