India joins United States and 13 economies in coalition to tackle global structural excess capacity

Key facts

• India has joined the United States and a dozen other economies, including Canada, the EU, Japan, South Korea, Mexico, France, Germany and the UK, in a joint statement to address global structural excess capacity in five sectors: autos and EVs, batteries, chemicals, foundational semiconductors and solar panels.
• The coalition will coordinate sectoral action and came days after a G20 trade ministers' meeting, with the United States taking the lead during its G20 presidency.
• The five sectors targeted by the coalition are globally dominated by China, which has long been blamed for offering subsidies and dumping goods.
• The United States Trade Representative is separately probing several countries, including India, for structural excess capacity under Section 301.
• The development came weeks after US President Donald Trump met his Chinese counterpart Xi Jinping.
• The countries committed to meeting at the technical level before December 2026 to develop terms of reference, share non-confidential information and data on structural excess capacity, and identify information gaps drawing on work of the OECD.
• In 2016, G20 trade ministers in Shanghai released a statement expressing concern about excess capacity in certain industries, which was endorsed months later by leaders at Hangzhou.