New Delhi, May 17 -- India is currently evaluating a U.S. proposal to relax restrictions on ethanol imports for fuel use, a move that could significantly impact ongoing trade discussions between the two nations.

The U.S. is advocating for India to permit ethanol shipments for blending with gasoline, a practice currently restricted to non-fuel purposes and subject to high import duties in India.

This request has raised concerns among Indian industry officials, who argue that allowing ethanol imports could undermine substantial investments made in domestic ethanol production capacities.

A senior industry official emphasised that acceding to the U.S. demand might jeopardise the country's efforts to bolster its biofuel sector.

The timing ...