India counters US claims of surplus capacity in textiles, steel

The textile industry body, TEXPROCIL, has also challenged the U.S. claims, submitting a detailed response to the USTR. The organization argued that over 80% of India's textile production is consumed domestically, leaving limited scope for export-driven overcapacity. TEXPROCIL further contended that production trends do not indicate a rapid build-up of capacity, with output in several segments remaining flat or moderated in recent years.

The Ministry of Commerce has separately filed representations on behalf of affected industries, refuting claims related to both excess capacity and the alleged use of forced labor in India's cotton textile sector. The USTR's broader review, initiated after the U.S. noted a trade surplus with India, is examining whether countries employ subsidies and other policy measures to create structural manufacturing advantages that distort global trade. Sectors flagged in the USTR's notice include textiles, steel, petrochemicals, health products, automotive goods, and India's solar manufacturing industry.