'No overcapacity' in steel, textiles sectors: Amitabh Kumar, Additional Secretary DGTR, Commerce
New Delhi, June 10
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 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.
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."
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.
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
Reader Comments
Interesting perspective from Mr. Kumar. As someone watching global trade, I do think the 'overcapacity' narrative is often used by Western nations to protect their own industries. Good to see India pushing back at WTO.
Spot on! Our textile sector needs more investment, not less. Cotton wear and tear is real - especially in rural areas where people work hard. Overcapacity is just a excuse to block our exports. 😤
While I appreciate the sentiment, we need to be honest about quality issues too. Many Indian textile units are outdated. Capacity alone isn't enough - we need modernisation and better technology to compete globally.
DGTR is doing great work defending Indian interests. The WTO framework is biased towards developed nations. We need to stand firm on this 'overcapacity' nonsense. Our growth should not be capped by others!
Interesting that 'overcapacity' isn't covered under WTO trade remedies. Makes you wonder why some countries keep pushing it. Maybe they just don't like competition from efficient producers like India? 🤔
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.