TEXPROCIL Challenges USTR's Allegations on India's Textile Sector Capacity
US Section 301 probe: India textile body TEXPROCIL pushes back on USTR excess capacity allegations
The Economic Times
Image: The Economic Times
TEXPROCIL, the Indian textile industry body, has formally responded to the U.S. Trade Representative's Section 301 investigations alleging excess capacity and forced labor in India's cotton textile sector. The organization asserts that the sector is primarily demand-driven, with over 80% of production consumed domestically, and emphasizes the importance of maintaining trade relations with the U.S.
- 01TEXPROCIL submitted its response to USTR's Section 301 investigations on April 15.
- 02The Indian textile sector is primarily driven by domestic demand, not excess capacity.
- 03In 2025, India had a $42 billion trade surplus with the U.S.
- 04The industry body emphasizes India's significant role as a buyer of U.S. cotton.
- 05Public hearings on the investigations are scheduled for April 28, 2026, in Washington, D.C.
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TEXPROCIL (the Cotton Textiles Export Promotion Council of India) has submitted a representation to the Office of the United States Trade Representative (USTR) regarding ongoing Section 301 investigations into alleged structural excess capacity in manufacturing and forced labor practices. The submission, made on April 15, counters claims of excess capacity in India's cotton textile sector, asserting that over 80% of production is consumed domestically, highlighting strong domestic demand. TEXPROCIL chairman Vijay Agarwal stated that any adverse actions under Section 301 could jeopardize the beneficial trade relationship between India and the U.S., especially considering India's $42 billion bilateral trade surplus with the U.S. in 2025. The USTR's investigations were initiated following the rejection of President Trump's tariffs and aim to assess whether countries maintain manufacturing capacity through subsidies or other means that distort trade. The Section 301 Committee is set to hold public hearings on April 28, 2026, in Washington, D.C.
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If adverse actions are taken under Section 301, it could disrupt the cotton textile industry's operations and trade dynamics, affecting domestic producers and the overall economy.
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