NEW DELHI: India on Wednesday rejected allegations of surplus capacity in the textiles and steel sectors, asserting that per capita consumption of these products in the country remains among the lowest in the world.
The remarks assume significance as the United States Trade Representative (USTR) launched a probe under Section 301 regarding the acts, policies, and practices of 16 economies, including India, relating to structural excess capacity and production in manufacturing.
Director General of Trade Remedies Amitabh Kumar stated that overcapacity has not been addressed under any trade remedial laws within the World Trade Organization (WTO) framework. He described the issue as a new narrative aimed at targeting a particular country.
In its submission to the USTR, India has argued that the notice does not provide a cogent rationale or prima facie evidence to substantiate the allegation that India has structural excess capacity in its major industries.
India emphasized that its domestic consumption levels are low, and the country is not contributing to global overcapacity. The government reiterated its commitment to fair trade practices and urged the US to reconsider its approach based on solid evidence rather than unsubstantiated claims.
