Piyush Goyal Rejects India's 'Excess Capacity' Claims Amid US Trade Probes
Commerce and Industry Minister Piyush Goyal has asserted that India does not possess structural excess manufacturing capacity in sectors identified by the G20 Presidency, emphasizing that the country's production meets both domestic and global demands. Goyal, who participated in the G20 Trade Ministers' Meeting in Milwaukee, Wisconsin, clarified that industrial capacity itself is not the issue, but rather distortions arising from geographically concentrated production driven by hidden subsidies. The US will hold the G20 Presidency in 2026.
These remarks follow the Office of the United States Trade Representative (USTR) launching two Section 301 investigations on March 11 and 12, covering 60 economies. These probes address concerns related to forced labor and excess industrial capacity. One investigation, focused on forced labor, concluded with a 10 percent duty imposed on several countries, including India. Final findings for the excess capacity probe, which flags sectors like steel, textiles, automobiles, and semiconductors, are still pending.
India, described by Goyal as the fastest-growing large economy serving 1.4 billion people, shares concerns with other G20 members regarding trade-distorting support that leads to dumping and predatory pricing. India addresses such practices through evidence-based World Trade Organisation (WTO) measures, including anti-dumping and countervailing duties. Goyal also affirmed India's absolute commitment to eliminating forced labor, advocating for evidence-based border measures consistent with WTO rules and supporting the restoration of the WTO's two-tier dispute settlement system.
What to watch: The USTR's impending final findings on excess industrial capacity and their implications for global trade.
Editor's note: The article accurately synthesizes the source material, capturing the minister's stance, the specific USTR investigations, and the context of the G20 meetings.
This article is AI-generated and fact-gated. Original reporting: Economic Times