India has joined a 15-country US-led initiative to address structural excess manufacturing capacity in sectors including automobiles, batteries, chemicals, semiconductors and solar panels.

India was among 14 economies that joined the US in signing a Joint Ministerial Statement on October 7, following discussions at the G20 Trade Ministers’ meeting in Milwaukee on September 30-October 1. Other signatories include the European Union, Japan, South Korea, Mexico, Canada, Australia, Argentina, France, Germany, Poland, Turkiye and the United Kingdom.

The statement calls on countries to end non-market policies and practices that distort markets and contribute to excess capacity. It warns that in the absence of such steps, more countries will act to defend their industries, workers and economies.

The move comes as India itself faces scrutiny under a US Section 301 investigation into excess manufacturing capacity. Experts say New Delhi must balance cooperation with its own manufacturing ambitions, and it has maintained that its capacity meets domestic and global demand.