No overcapacity in steel, textiles; India's consumption remains low: DGTR

New Delhi: India does not have surplus capacity in textiles and steel sectors, as the country's per capita consumption of these products remains among the lowest globally, said Amitabh Kumar, additional secretary and Director General of Trade Remedies (DGTR).

"We do not think we have overcapacity in the textiles sector. Our per capita consumption of all kinds of textile products is abysmal, particularly in manmade fibre and technical textiles. Ours is a hot, tropical climate; we wear cotton. How do we have overcapacity?" he said.

Similarly, in case of steel, he said, "Our per capita consumption is so low. We may be the second largest producer of steel, but compared to our population, our economic and growth imperative, it's one of the lowest."


In March, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301(b) of the Trade Act of 1974 into the policies and practices of several economies, including India, regarding structural excess capacity and manufacturing production.

In its submission, India rejected the allegations, saying the notice failed to provide a credible rationale to support claims that India's major industries suffer from structural excess capacity that contributes to trade surplus with the US.

India is a net importer of manmade fibres, in addition to cotton.

Kumar said trade remedy measures are critical for addressing unfair practices, strengthening domestic manufacturing and upholding a rules-based global trading system. He mentioned that 40-50 trade defence probes are underway at any given time, covering industries affected by subsidised imports from various countries.