Politics · India Bureau
India leads 14-nation push to tackle global industrial overcapacity
India and 13 other countries have issued a joint call for coordinated international action to address excess industrial capacity that distorts global markets. The statement was adopted during OECD Trade Committee discussions in Washington.
LSN India ·
A coalition of 14 nations, led by India, has urged the international community to adopt concrete measures to eliminate structural overcapacity in key industrial sectors. The countries released a joint ministerial statement following meetings held on the sidelines of the Organisation for Economic Co-operation and Development (OECD) Trade Committee deliberations in Washington.
The statement emphasises the urgent need for all countries to take decisive steps to address the problem of excess production capacity. "We call on all countries to take steps to eliminate structural excess capacity and production in their economies, including by ending the use of non-market policies and practices that distort markets and contribute to the problem," the joint declaration stated.
The initiative builds momentum from broader discussions held at the G20 Trade Ministerial meeting in Milwaukee. The participating economies have committed to working alongside the United States through newly established sectoral platforms designed to examine and combat structural overcapacity and production in multiple key industries.
Excess industrial capacity has emerged as a significant challenge in the global economy, contributing to market distortions, dampening prices, and undermining domestic industries. By establishing dedicated sectoral working groups, the coalition aims to develop coordinated responses tailored to specific sectors experiencing overcapacity challenges, signalling a shift towards more targeted, collaborative approaches to managing industrial imbalances.