India and the problems with Chinese manufacturing overcapacity

The US has recently warned Beijing against dumping goods on global markets as it fears China would be easing domestic overcapacity with cheap exports Manufacturing overcapacity is a cause of concern for any economy. However, it has wider global ramifications. For instance, the US steel industry also went through this phase. In the 1970s and 1980s, the US steel industry experienced significant overcapacity. Despite declining demand for steel in the United States due to various economic and technological changes, steel manufacturers continued to produce at high levels. This overproduction led to a glut of steel in the market, causing prices…