Goyal raised the issue during a session on the MFN principle, stressing that the framework should ensure equal trading terms for the smallest and largest traders. He said preserving this balance would strengthen confidence, predictability and inclusiveness in the multilateral trading system.
The minister’s comments come as G20 members discuss ways to address trade distortions, excess capacity and the future of the multilateral trading system. India has argued that corrective measures against unfair trade practices must remain within WTO rules, while developing countries should retain policy space to industrialise, ANI reported.
India backs WTO-compliant action
Addressing a session on structural excess capacity and production, Goyal said India shares concerns that trade-distorting support in some economies can result in dumping and predatory pricing.
He said such concerns can be addressed through WTO-consistent measures, including anti-dumping and countervailing duties, provided they are based on evidence and subject to judicial review. Corrective action, he said, should follow established multilateral rules rather than unilateral interventions.
Goyal also rejected the suggestion that India has structural excess capacity in the sectors identified by the G20 presidency. India is a domestic-demand-driven economy serving a population of 1.4 billion, he said, adding that industrial capacity itself is not problematic and that distortions arise when production becomes geographically concentrated because of hidden subsidies.
He said diversifying production and supply chains is a legitimate objective, but should not become a pretext for measures outside WTO rules or shift the burden of adjustment to developing countries.
India seeks stronger WTO safeguards
On the MFN principle, Goyal said India’s trade depends on a transparent and non-discriminatory framework. He also called for restoration of the WTO’s two-tier dispute settlement mechanism and preservation of special and differential treatment for developing countries.
ANI reported that Goyal reiterated India’s position on forced labour in global supply chains as well. He cited Article 23 of the Constitution and said India has ratified International Labour Organization Conventions 29 and 105.
India also amended its Foreign Trade Policy in July 2026 to prohibit imports made using forced labour, he said.
The G20 Trade Ministers’ Meeting is being held in Milwaukee, Wisconsin, with discussions focused on trade rules, production capacity, supply-chain diversification and reforms to the multilateral trading system.