India Rejects U.S. Claims of Excess Steel, Textile Capacity
New Delhi — India has rejected claims made by the Trump administration under a U.S. Section 301 trade investigation that excess production capacity in India’s textile and steel sectors is being used to export goods at low prices.
Amitabh Kumar, additional secretary in the Ministry of Commerce, said Wednesday that India does not have surplus manufacturing capacity in either sector. He denied allegations being examined under the Office of the United States Trade Representative’s Section 301 investigation.
Kumar said India’s production levels in textiles and steel must be viewed in the context of the country’s large population and growing domestic consumption needs.
On a per capita basis, he said, both production and consumption remain well below levels seen in several developed economies. He added that new measures are being considered for the steel sector.
A Section 301 trade investigation is an inquiry conducted by the Office of the United States Trade Representative under Section 301 of the Trade Act of 1974. It is used to determine whether foreign government policies or practices are unreasonable, discriminatory or in violation of international trade agreements, and whether they burden or restrict U.S. commerce.
India and the United States are expected to finalize their long-awaited trade agreement only after the current Section 301 investigation concludes, according to sources familiar with the matter.
Sources said New Delhi is seeking assurances that no additional tariffs will be imposed once the bilateral trade agreement is completed, as negotiators work to provide greater certainty for businesses and investors.
The timing is significant because the temporary 10 percent tariff regime imposed by the United States is set to expire July 24. After that, basic Most Favored Nation tariff rates are expected to take effect, officials said.
India is also pushing for more favorable tariff treatment compared with competing manufacturing economies as it seeks to strengthen its position as a global production and export hub. (Source: IANS)
