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The World Trade Organization (WTO) Dispute Settlement Body (DSB) has agreed to set up a panel to examine China’s complaint against India over measures affecting imports of solar cells, solar modules and certain information technology goods.
The decision was taken at a DSB meeting held on June 23, after China submitted its second request for a dispute panel. Under WTO rules, a second request for panel establishment is generally accepted unless there is consensus against it.
China has challenged tariffs applied by India on certain imported high-tech goods, along with incentive measures linked to solar energy products.
Beijing has argued that some of India’s measures favour domestic products over imported goods and may not be consistent with the country’s WTO commitments. It has claimed that the measures violate provisions under the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.
China said its concerns remained unresolved despite bilateral consultations with India.
India expressed regret over China’s decision to seek the establishment of a panel for the second time. New Delhi said it had already demonstrated during consultations that the measures were compliant with WTO rules.
India had earlier declined to accept China’s first panel request at the DSB meeting held on May 22.
The dispute comes at a time when India has been actively working to reduce import dependence and build domestic manufacturing capacity in the solar sector.
India has introduced several policy measures to support local manufacturing, including duties on imported solar cells and modules, domestic procurement requirements in certain government-backed projects, the Approved List of Models and Manufacturers (ALMM), and a production-linked incentive scheme for solar manufacturing.
These measures are part of India’s broader push to strengthen its clean energy supply chain and support domestic producers as solar capacity additions rise across the country.
China is a major global exporter of solar and high-tech goods, making India’s policy measures commercially significant for Chinese manufacturers.
Both India and China are WTO members. Under the WTO dispute settlement mechanism, a member country can challenge another member’s policy if it believes the measure is harming its trade interests or is inconsistent with WTO commitments.
China is also pursuing a separate WTO dispute concerning India’s measures in the automotive and renewable energy sectors.
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
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