India has joined a 15-country US-led initiative to tackle excess manufacturing capacity. The group signed a Joint Ministerial Statement on October 7. The signing followed the G20 Trade Ministers’ meeting in Milwaukee.

The initiative covers automobiles, batteries, chemicals, semiconductors and solar panels. It targets market-distorting policies that create overproduction. No tariffs or quotas have been announced.

Signatories include the European Union, Japan, South Korea, Mexico, Canada, Australia, the UK and others. The US launched a separate Section 301 probe in March into 16 economies, including India.

Trade experts said India faces a balancing act. It must cooperate with Washington while protecting its own manufacturing ambitions. ‘Signing the declaration should not amount to accepting the case against Indian manufacturing,’ said GTRI founder Ajay Srivastava.

The countries will set up sectoral platforms. They will share information and plan joint action.

US Trade Representative Jamieson Greer said the initiative targets production that exceeds global demand. He said such output is often sustained by government policies. The statement was signed on the sidelines of the OECD Trade Committee. India is among 16 economies in the separate Section 301 probe.