Commerce and Industry Minister Piyush Goyal said India does not have structural excess manufacturing capacity in the sectors identified by the G20 Presidency.

Speaking at the G20 Trade Ministers’ Meeting in Milwaukee, Goyal said India’s manufacturing capacity serves both domestic demand and global markets. He stressed that industrial capacity itself is not a problem.

India seeks fair global trade rules

Goyal said production concentration can create trade distortions when it is supported by hidden subsidies. He added that supply-chain diversification is a valid goal, but it should follow World Trade Organization (WTO) rules.

India also opposes measures that shift the adjustment burden to developing economies. According to Goyal, developing countries need enough policy space to build their industrial capacity.

India addresses unfair trade practices

Goyal said India shares concerns about trade-distorting support that can lead to dumping and predatory pricing. India addresses such practices through WTO-compliant measures, including anti-dumping and countervailing duties.

The remarks come as the United States has raised concerns over excess industrial capacity across several sectors, including steel, textiles, aluminium, chemicals, automobiles, electronics, machinery and solar modules.

Focus on global supply chains

Goyal said India is a domestic-demand-driven economy serving a population of about 1.4 billion. The country is also developing manufacturing value chains from design to finished products.

He described India as a trusted partner in global supply chains.

At the G20 meeting, Goyal also discussed forced labour, Most-Favoured-Nation treatment and WTO reforms. He called for evidence-based action on forced labour and stressed the importance of due process.

He further said consensus remains central to the WTO. Special and differential treatment should also continue to support developing countries.

Goyal also called for the restoration of the WTO’s two-tier dispute settlement system.