New Delhi — India has rejected claims made by the Trump administration under a U.S. Section 301 trade investigation that its steel and textile sectors have excess production capacity that 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 by the Office of the United States Trade Representative under the Section 301 investigation.
Kumar said India’s production levels in steel and textiles must be viewed in the context of the country’s large population and rising domestic consumption needs.
He said both production and consumption remain well below the levels seen in several developed economies on a per capita basis. However, he added that the government is considering new measures for the steel sector.
A Section 301 investigation is conducted by the Office of the United States Trade Representative under the Trade Act of 1974. It examines whether foreign government policies or practices are unreasonable, discriminatory or in violation of 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 ongoing Section 301 investigation is completed, according to sources familiar with the matter.
Sources said New Delhi is seeking assurances that no additional tariffs will be imposed after the bilateral trade agreement is concluded. Negotiators are trying to provide greater predictability for businesses and investors.
The timing is significant because the temporary 10 percent tariff regime put in place by the United States is set to expire on July 24. After that, basic Most Favored Nation tariff rates are expected to take effect, officials said.
India is also seeking more favorable tariff treatment than competing manufacturing economies as it looks to strengthen its position as a global production and export hub. (Source: IANS)
