India to testify at USTR overcapacity probe on May 8

New Delhi: Indian trade officials and industry representatives will testify on May 8 to push back against the US’ claims of structural excess capacity and production in certain manufacturing sectors at a hearing at the office of the US Trade Representative, the American trade body said Monday.The US, had in March, began a probe, under Section 301 of the US Trade Act, alleging that India created significant excess capacity in petrochemicals, steel and solar modules while naming textiles, health, construction goods, and automotive goods as sectors where New Delhi has a global trade surplus. India has denied these claims.

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“The USTR will hold public hearings starting on May 5 and continuing through May 8, 2026, regarding the Section 301 investigations into 16 economies acts, policies, and practices relating to structural excess capacity and production in manufacturing sectors,” it said in a statement.

Industry representatives from plastics, cotton textiles, solar manufacturing and auto components will participate in the hearing.

India has rejected the allegations. On its $42 billion bilateral trade surplus with the US in 2025, New Delhi said a bilateral trade surplus between two countries is a “macroeconomic phenomenon which is a product of a concatenation of circumstances” including the role of certain non-market economies.

India, which has a “significantly smaller trade share with the US in comparison to the other trading partners, cannot be attributed to playing a role in widening the US trade deficit” India said in its submission.Also Read: FTAs to help boost exports, generate jobs: Piyush Goyal

India submitted that the present investigation does not satisfy the requirements for the initiation of this investigation pursuant to Sections 301 and 302 of the Trade Act of 1974.

There is another investigation launched by the USTR on March 12 against India and others on failure to take action on forced labour wherein India has submited that the probe does not satisfy the legal requirements for the initiation.