Commerce Minister Piyush Goyal informed the G20 Trade Ministers gathered in the U.S. that India does not have structural excess capacity in the sectors identified by the U.S., and that it has taken steps to prohibit the import of goods made using forced labour.
This comes at a time when the U.S. has already levied a 10% tariff on India for not doing enough to stop imports of goods made using forced labour, and is currently investigating it and other countries for structural excess capacity, which could bring additional tariffs.
On both issues, Mr. Goyal said that measures should not be unilateral and must be compliant with World Trade Organization (WTO) rules.
“Union Minister of Commerce and Industry Shri Piyush Goyal participated in the concluding day of the G20 Trade Ministers’ Meeting in Milwaukee, Wisconsin, and spoke in sessions on structural excess capacity and production, updating the Most-Favoured-Nation principle, ending forced labour in global supply chains, and the closing session,” the Commerce Ministry said in a release.
The G20 Presidency is held by the U.S. for 2026.
India’s defence on forced labour
The Office of the U.S. Trade Representative (USTR) had in July 2026 levied additional tariffs on 60 countries, including India, as a result of its investigation on whether these countries had done enough to stop the import of goods made using forced labour. The tariff on imports from India was set at 10%.
Speaking on ending forced labour in global supply chains, Mr. Goyal said India’s commitment to the elimination of forced labour is “absolute and unconditional”, the release said.
“He noted that Article 23 of the Constitution prohibits forced labour as a fundamental right, enforceable by the Supreme Court,” it added. “He said India has ratified International Labour Organization (ILO) Conventions 29 and 105 and, in July 2026, amended its Foreign Trade Policy to prohibit the import of goods produced using forced labour.”
‘No unilateral actions’
Mr. Goyal also said that measures at the border must be based on “specific and verifiable evidence rather than presumptions about entire countries, regions or sectors”, and must respect due process and WTO rules, adding that the ILO remains the competent, universal, and tripartite body for labour standards.
“India supports the objective of eliminating forced labour and voluntary exchange of good practices among G20 members, provided that such cooperation does not involve monitoring of members, create new obligations or result in information being used as a basis for unilateral trade action,” Mr. Goyal said.
‘India doesn’t have excess capacity’
The USTR is also in the process of investigating 60 countries on whether they have structural excess capacity and production and if this was hurting the U.S. economy. That investigation could result in additional tariffs on imports from India.
Regarding structural excess capacity and production, Mr. Goyal emphasised that India is the fastest-growing large economy in the world, with an economy that is driven by domestic demand, and is building manufacturing value chains “from design to finished goods”.
“He said India’s manufacturing capacity serves its domestic and global needs and that, in the sectors identified by the G20 Presidency, India does not have structural excess capacity,” the release said.
Mr. Goyal said that India shares the concerns of many G20 members that trade-distorting support in some economies can lead to “dumping and predatory pricing”.
‘Measures must be WTO-compliant’
However, the Commerce Minister emphasised that such concerns are addressed through measures consistent with the World Trade Organization (WTO), such as anti-dumping and countervailing duties, based on evidence and subject to judicial review.
“He emphasised that industrial capacity in itself is not the issue, while distortions can arise where geographical concentration of production is driven by hidden subsidies and support,” the release said. “He said diversification of production and supply chains is a legitimate objective, but cannot be used as a pretext for measures outside WTO rules or for shifting the burden of adjustment onto developing countries, which must retain policy space to industrialise.”
Mr. Goyal further said that the sharing of statistics and data should take place within existing mechanisms.
Published – October 02, 2026 02:24 pm IST
