Government Launches Probe into Unauthorized Use of 'Khela India' Brand by Private Entity

The United States initiated an investigation under Section 301 (b) of the Trade Act of 1974 on March 11, 2026, targeting more than a dozen countries, including India, China, the European Union, Japan, South Korea, and Mexico. This probe cites structural excess capacity and over-production in specific manufacturing sectors as the primary concern. USTR Jamieson Greer stated that the investigations focus on economies exhibiting large or persistent trade surpluses or underutilised capacity. This action follows the US Supreme Court's declaration last month that reciprocal tariffs previously levied by the Trump administration under the International Emergency Economic Powers Act were illegal.

For India, the US Trade Representative (USTR) highlighted a trade surplus of $58 billion with the US in 2025, specifically mentioning sectors such as textiles, health, construction goods, and automotive goods. The USTR also pointed to significant excess capacity in India's solar module sector, where current manufacturing is nearly triple the annual domestic demand, as well as in petrochemicals and steel industries. The USTR will open dockets for written comments on March 17, and the Section 301 Committee will convene public hearings on May 5. International trade experts, like Deborah Elms of the Hinrich Foundation, noted the rapid pace of this inquiry, aiming to replace existing Section 122 tariffs, which are set at 10% globally and expire on July 27, with new Section 301 measures by July. Unlike other tariff authorities, Section 301 is less likely to be overturned by US Courts or involve Congress, empowering the executive branch to modify or reopen cases at will. This move assumes significance as India and the US had agreed to a trade deal, but its formal signing was paused, with Commerce and Industry Minister Piyush Goyal indicating that negotiations would resume after clarity on the tariff situation.

Separately, the Indian government and the Reserve Bank of India (RBI) have strengthened measures against fraudulent loan apps. Based on recommendations from the RBI's Working Group on Digital Lending, the RBI has issued regulatory guidelines to enhance customer protection and ensure a safe digital lending ecosystem, requiring all Regulated Entities (REs) to comply. The Ministry of Electronics and Information Technology (MeitY) has been empowered to block fraudulent loan apps under Section 69A of the Information Technology (IT) Act, 2000, following due process. To aid citizens, the RBI operationalised a directory of 'Digital Lending Apps (DLAs)' on its website from July 1, 2025, allowing verification of an app's association with an RE. Furthermore, the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs (MHA) proactively analyses these apps, and the MHA has launched a National Cybercrime Reporting Portal (www.cybercrime.gov.in) and Helpline "1930" for reporting incidents. Banks, through the 'SACHET' portal and State Level Coordination Committees (SLCC), also facilitate complaints against illegal money collection. These initiatives, including awareness campaigns by RBI and banks, aim to protect citizens from exploitation by unauthorized mobile loan apps, with the Central Government supplementing the efforts of State/UT Law Enforcement Agencies.

This dual development is crucial for India, as the US trade probe could lead to new tariffs impacting key Indian export sectors and ongoing trade negotiations, while the robust regulatory and enforcement actions against fraudulent loan apps are vital for protecting Indian citizens and ensuring the integrity of the rapidly growing digital financial services sector. Both topics are highly relevant for UPSC examinations, particularly under GS Paper II (Polity & Governance, International Relations) and GS Paper III (Economy, Internal Security).