Business · Trade · 3 days ago
India joins 14 economies in pledge to address excess manufacturing capacity
India has joined 14 other economies, including the United States, the European Union and the United Kingdom, in a statement on excess manufacturing capacity.
The signatories say production that remains above demand can distort prices, weaken competition and harm industries and jobs in other countries.
They want governments to address policies and practices that contribute to these market distortions.
The group named cars and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels as areas of concern.
India’s commerce minister has said the country does not have structural excess capacity in the sectors identified by the G20 presidency.
The United States is investigating India and 15 other trading partners over alleged excess industrial capacity, including in steel, petrochemicals and solar modules.
Officials from the signatories have begun discussions, and they plan technical talks before December 2026 to agree on terms and exchange information.
India joined 14 other economies in signing a statement calling for action to address structural excess manufacturing capacity and production.
The signatories urged governments to end non-market policies and practices that distort markets.
They agreed to work through dedicated sectoral platforms, initially focusing on automobiles and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels.
The statement warned that excess capacity can harm domestic industries, jobs, competition and supply chains.
India’s commerce and industry minister has said the country does not have structural excess capacity in the sectors identified by the G20 presidency.
- Who
- India and 14 other economies, including the United States, the European Union and the United Kingdom.
- What
- They signed a joint ministerial statement calling for action on structural excess capacity and production.
- When
- The statement was issued on Wednesday; the articles were published on October 8, 2026.
- Where
- The statement followed a meeting on the sidelines of the OECD Trade Committee deliberations in Washington. G20 trade ministers had discussed the issue in Milwaukee.
- Why
- The signatories said excess capacity and production can distort markets and harm industries, workers and economies.
India
Signatory economies concerned about structural excess capacity
Structural excess capacity
India
India’s commerce and industry minister said India does not have structural excess manufacturing capacity in the sectors identified by the G20 presidency.
Signatory economies concerned about structural excess capacity
The signatories said structural excess capacity and production had worsened since 2016 and posed challenges for trading partners.
Industrial policy
India
India said industrial capacity alone does not cause dumping, though hidden subsidies and support can create distortions.
Signatory economies concerned about structural excess capacity
The signatories called for countries to end non-market policies and practices that distort markets and contribute to excess capacity.
We call on all countries to take steps to eliminate structural excess capacity and production in their economies, including by ending the use of non-market policies and practices that distort markets and contribute to the problem.
At the same time, we recognize that such individual efforts will be more effective if concerned countries cooperate, share information, and take complementary action, wherever possible.
To that end, we are resolved to work together in new, dedicated sectoral platforms to further examine and take effective actions that address structural excess capacity and production in key sectors of concern.
G20 trade ministers held discussions in Milwaukee.
The US Trade Representative released the joint statement after a meeting on the sidelines of OECD Trade Committee deliberations in Washington.
The participating economies plan technical-level discussions to formulate terms of reference and exchange non-confidential information and data.
- Signatories
- 15 economies
- Initial focus sectors
- Automobiles and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels
- G20 discussion dates
- September 30 and October 1, 2026
- Planned technical discussions
- Before December 2026
- Non-signing G20 members named
- China, Brazil, Indonesia, Russia, Saudi Arabia and South Africa
Sources
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