US views India as both ally and target in global manufacturing probe

India has aligned with a US-led initiative involving 15 nations aimed at addressing global manufacturing overcapacity. The move signals India's cooperation on international manufacturing issues, yet creates a complex situation for New Delhi's industrial strategy.

Simultaneously, the US is conducting a separate investigation into India's manufacturing sectors, particularly solar modules and steel production. The probe is expected to conclude by March 2027, potentially impacting India's domestic manufacturing ambitions and regulatory standing.

This dual position—as both a cooperative partner in the overcapacity initiative and a subject of US investigation—underscores the tensions in US-India relations on trade and manufacturing. The investigation's outcome could significantly shape India's ability to expand its solar and steel industries in coming years.