India to Defend Against U.S. Overcapacity Claims in Trade Hearing
India to testify at USTR overcapacity probe on May 8
The Economic TimesImage: The Economic Times
Indian trade officials will testify on May 8 at the U.S. Trade Representative's office to counter allegations of overcapacity in sectors like petrochemicals and steel. The U.S. claims India has created excess production capacity, which India has denied, asserting that its trade surplus is a result of various economic factors.
- 01India will testify against U.S. claims of structural excess capacity in manufacturing sectors.
- 02The U.S. initiated a probe under Section 301 of the Trade Act, targeting sectors including petrochemicals and steel.
- 03India maintains that its trade surplus with the U.S. is a macroeconomic phenomenon.
- 04The hearing will include industry representatives from various sectors.
- 05India has also challenged another U.S. investigation regarding forced labor practices.
Advertisement
In-Article Ad
On May 8, Indian trade officials and industry representatives will present their case at the U.S. Trade Representative's office, contesting allegations made by the U.S. regarding structural excess capacity in sectors such as petrochemicals, steel, and solar modules. The U.S. initiated this investigation under Section 301 of the U.S. Trade Act, claiming that India has created significant excess production capacity while also identifying textiles, health, construction goods, and automotive goods as areas where India has a global trade surplus. India has firmly rejected these allegations, arguing that its $42 billion bilateral trade surplus with the U.S. in 2025 is a result of various macroeconomic factors rather than excess capacity. The hearing will also feature representatives from industries including plastics, cotton textiles, and solar manufacturing. Additionally, India is contesting another investigation launched by the U.S. on March 12 regarding forced labor, asserting that it does not meet the legal requirements for initiation under U.S. law.
Advertisement
In-Article Ad
The outcome of this hearing could influence India's trade relations with the U.S. and affect various manufacturing sectors in India.
Advertisement
In-Article Ad
Reader Poll
Do you believe the U.S. is justified in investigating India's manufacturing practices?
Connecting to poll...
More about U.S. Trade Representative
Read the original article
Visit the source for the complete story.

