India has formally rejected allegations from the US Trade Representative (USTR) concerning excess structural capacity in various sectors, including petrochemicals and textiles. The Indian government emphasized that its $42 billion bilateral trade surplus with the US in 2025 is a result of macroeconomic factors rather than structural issues within its industries. India argues that the USTR's focus on specific sectors does not prove the existence of excess capacity. Furthermore, India has requested the USTR to terminate two investigations, including one related to forced labor, stating that these probes do not meet the legal criteria for initiation under the Trade Act of 1974. India asserts that there is no evidence to support claims that forced labor provides an unfair competitive advantage to its exporters. In both cases, India is seeking a negative determination from the USTR to conclude the investigations.