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India Rejects U.S. Claims of Textile and Steel Overcapacity

India has formally challenged allegations of manufacturing surplus in its textile and steel sectors, pushing back against a U.S. Trade Representative Section 301 probe. The investigation, which scrutinizes India’s domestic production levels, prompted a sharp rebuttal from government officials tasked with defending the nation's industrial output.

India Rejects U.S. Claims of Textile and Steel Overcapacity

Additional Trade Secretary Amitabh Kumar addressed the dispute on Wednesday, categorically dismissing the notion that the country possesses excess capacity. Kumar argued that current production metrics fail to reflect the internal reality of a nation grappling with surging per capita demand. Rather than exporting a surplus, India’s industrial sectors are struggling to keep pace with domestic consumption needs. This clarification serves as a direct response to the American inquiry, framing the current output not as an oversupply, but as a shortfall relative to internal growth requirements.

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