The US has launched an investigation under Section 301 (b) of the Trade Act of 1974 into more than a dozen countries, including India and China, citing structural excess capacity and over-production in certain manufacturing sectors. India also has created significant excess capacity in petrochemicals, steel, and other industries,” the USTR said. The manufacturing sectors which contributed to this include textiles, health and auto. Greer said, “This excess capacity leads to, among others, overproduction and large or persistent trade surpluses, as well as under-utilised and unused capacity, in manufacturing sectors. Structural excess capacity has been characterised generally as under-utilised industrial production capacity that is sustained through governmental interventions or policies incentivising companies to maintain or grow their unused capacity inefficiently.”

Source: Indian Express March 13, 2026 10:45 UTC