India Joins US and 13 Economies in Joint Statement on Manufacturing Excess Capacity

India has joined the US and 13 other economies in signing a joint ministerial statement on excess manufacturing capacity and production. The statement was signed on October 7 on the sidelines of the OECD Trade Committee. 

The participating economies will work through sector-specific platforms to examine excess capacity and consider measures to address it. The move follows discussions at the G20 Trade Ministerial in Milwaukee, Wisconsin. 

15 Economies Sign Joint Statement 

The signatories include India, the US, Argentina, Australia, Canada, the European Union, France, Germany, Italy, Japan, South Korea, Mexico, Poland, Türkiye and the UK. 

The countries have agreed to examine structural excess capacity in key manufacturing sectors through dedicated platforms. 

Focus on Market-Distorting Policies 

The statement also calls for steps to end non-market policies and practices that can distort markets and contribute to excess production. 

US Trade Representative Jamieson Greer said economies had raised concerns about countries where manufacturing output remains above global demand. He said such policies could affect domestic industries and local production. 

The US administration, Greer said, would continue working with trading partners on the issue. 

India Also Part of Separate US Probe 

India is among 16 economies covered by a separate USTR investigation launched in March under Section 301 of the US Trade Act. 

That investigation is examining whether excess manufacturing capacity and production are connected to government policies and practices that could harm US commerce. 

The October 7 statement is separate from this investigation. 

No Tariffs Announced Under Statement 

The joint statement does not announce any tariffs or name individual countries as targets. It also does not specify the manufacturing sectors that will be examined. 

The sectors and possible measures will depend on the work carried out through the proposed platforms. 

Read More: India's Diesel Exports Hit 1-Year High in September 2026 as Shipments to Europe Surge! 

Conclusion 

India has joined the US and other major economies in a common effort to examine manufacturing excess capacity and related market practices. 

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