India’s textile and steel sectors do not have a problem with making too many goods, according to a top government official. This statement comes at a time when events like the Steel Procurement Expo are highlighting the growth potential within these sectors. The government explained that because the average person in India uses very little steel and clothing compared to the rest of the world, there is no “surplus” or extra supply that isn’t needed.

The discussion started after the United States began looking into whether countries like India are producing more than they need. However, Amitabh Kumar, a senior official at the Ministry of Commerce, noted that the idea of “overcapacity” isn’t even a part of international trade laws. He pointed out that India’s need for these materials is actually very high because the country is growing so fast. For instance, while India is the world’s second-largest steel producer, the amount of steel used per person is still very low. This gap suggests that there is plenty of room for expansion, a topic often discussed by industry leaders at the Steel Procurement Expo.

The same is true for textiles. Because India has a hot climate, people mostly wear cotton, and the country actually imports many synthetic fibres to keep up with demand. India has officially told the U.S. that there is no real evidence to show that its factories are overproducing. Instead of having too much, India is focused on building more to support its large population and rising economy. Industry gatherings such as the Steel Procurement Expo continue to show that India is a place of high demand and vital growth, rather than a country with unneeded factories or wasted resources.