India Joins 14 Economies to Push Global Action on Excess Industrial Capacity
India has joined 14 other economies in calling for coordinated action against structural industrial overcapacity, putting fresh pressure on market-distorting policies while exposing divisions within the G20.
India has joined 14 other economies in urging coordinated global action against excess industrial capacity, warning that persistent overproduction can distort markets, hurt domestic industries and widen the gap between supply and demand.
The call came through a joint ministerial statement issued in Washington after discussions on the sidelines of the OECD Trade Committee deliberations. The participating economies agreed to work through dedicated sectoral platforms to examine structural overcapacity and explore measures to address it.
The signatories include India, the United States, the European Union, France, Germany, the UK, Japan, South Korea, Australia, Canada, Italy, Mexico, Argentina, Poland and Turkiye.
The statement specifically called for countries to address structural excess production and move away from non-market policies and practices that distort competition. US officials argued that unchecked overcapacity could damage domestic industries, displace local production and put pressure on workers.
However, the initiative also highlights the G20's continuing divisions. China, Brazil, Indonesia, Russia, Saudi Arabia and South Africa did not sign the statement, reflecting the lack of consensus on industrial capacity and related trade concerns.
The push builds on earlier G20 trade discussions in Milwaukee, where ministers failed to reach agreement on several contentious issues. With global trade already wrestling with tariffs, subsidies and supply-chain concerns, overcapacity has now joined the list of problems refusing to leave the negotiating table.
