India lacks structural excess manufacturing capacity, says Goyal

India does not have structural excess manufacturing capacity in sectors identified by the G20 Presidency, Commerce and Industry Minister Piyush Goyal said on Tuesday. He noted that the country's industrial base serves both domestic demand and global supply requirements.

Goyal emphasised that manufacturing capacity itself is not inherently problematic, but distortions emerge when production becomes geographically concentrated due to hidden subsidies and state support. The minister's remarks come as the United States assumes the G20 Presidency in 2026.

While acknowledging diversification of production and supply chains as legitimate policy objectives, Goyal cautioned against weaponising such goals. He stressed that these initiatives cannot justify measures outside World Trade Organisation rules or shift adjustment burdens onto developing economies.

"Developing countries must retain adequate policy space to industrialise," Goyal stated, underscoring India's position that trade remedies should not compromise growth imperatives for emerging economies. The minister's comments reflect New Delhi's efforts to safeguard its manufacturing ambitions amid global discussions on industrial overcapacity.