Overcapacity in textiles not justified for India, says DGTR official

DGTR Additional Secretary Amitabh Kumar has rejected the narrative of 'overcapacity' in India's textile and steel sectors, arguing that the country's per capita consumption in these areas remains among the lowest in the world, making such claims unfounded.

No Overcapacity in Textile Sector

The narrative of "overcapacity" in sectors like textiles and steel is not justified in India's case, said Amitabh Kumar, Additional Secretary and Director General Trade Remedies (AS&DG) on Wednessday.

While addressing a media briefing, Kumar stressed that India's per capita consumption of textile products remains very low, particularly in man-made fibre and technical textiles, arguing that claims of overcapacity are unfounded. He noted that India's hot and tropical climate results in greater use of cotton garments, which face higher wear and tear, sustaining demand and leaving little room for concerns about excess capacity. "Our per capita consumption of all kinds of textile products is abysmal, particularly in manmade fibre, in technical textiles, so how do we have overcapacity, this country has hot climate, tropical climate, we wear cotton, how do we have overcapacity, wear and tear is more in cotton, there is no overcapacity," he said.

Steel Overcapacity Narrative Rejected

Similarly, Kumar rejected the narrative of "overcapacity" in the steel sector, arguing that India's per capita steel consumption remains among the lowest in the world despite the country being the second-largest steel producer. Highlighting that India'per capita consumption in steel is so low, he noted "We have one of the lowest, we may be the second highest producer of steel, but compared to our population, compared to our economic imperative, compared to our growth imperative, it is one of the lowest."

Overcapacity Not a WTO Trade Remedy Issue

Kumar also noted that "overcapacity" is not covered under any of the WTO's three trade remedial laws, describing it as a relatively new narrative. "I don't believe in this overcapacity business, and in any case, overcapacity is not covered under any of the three trade remedial laws in the WTO framework," he said.

DGTR's Role in Fair Trade

The Directorate General of Trade Remedies (DGTR), Department of Commerce, organised a media briefing on the theme "Trade Remedy Measures: Creating a Level Playing Field for Indian Industry" at its headquarters in New Delhi on Wednessday.

Kumar highlighted "DGTR conducts anti-dumping, anti-subsidy and safeguard investigations and recommends appropriate measures to the Government in accordance with domestic laws and India's obligations under the World Trade Organization (WTO) framework," according to a statement by the Ministry of Commerce & Industry. (ANI)

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