India has joined the United States and 13 other economies in signing a Joint Ministerial Statement to tackle industrial overcapacity, issued on October 7 on the sidelines of the OECD Trade Committee.

The statement targets excess capacity in autos and electric vehicles, batteries, chemicals, semiconductors and solar panels. These are sectors where state-backed overproduction has distorted global markets and prices.

US Trade Representative Jamieson Greer led the American delegation. The move signals a coordinated push by major economies to set rules on subsidies and capacity.

India’s participation is significant. The country is both a growing manufacturing hub and, separately, the subject of a US Section 301 investigation into its trade practices.

The pact is non-binding, but it lays the groundwork for shared standards on transparency and fair competition. Follow-up meetings are expected in the coming months.

For Indian industry, the statement could cut both ways: it opens doors for partnership while inviting closer scrutiny of its own incentive schemes.