WTO To Set Up Panel On China’s Complaint Against India Over Solar & IT Goods

New Delhi, Jun 24 (KNN) The World Trade Organization's (WTO) dispute settlement body has agreed to constitute a panel to examine China's complaint against India over measures applied to solar cells, modules and information technology goods, a Geneva-based official said. 

The decision was taken at a meeting of the body in Geneva.

China had first filed the dispute in December last year, following which bilateral consultations failed to produce a mutually agreed solution. India had blocked China's initial request for a panel in May, but a member country's second request cannot be vetoed under WTO rules, PTI reported.

The panel will now determine whether India's import duties and incentive measures for these product categories are consistent with its WTO commitments.

What China Has Alleged

China has alleged that India's tariffs on certain technology products, along with measures that favour the use of domestically manufactured goods over imports, discriminate against Chinese solar energy and information technology products in violation of WTO norms. 

Beijing has cited potential infringements of the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.

India's Position

India has expressed regret over China's second request, maintaining that it had demonstrated during consultations that its measures are consistent with WTO obligations. New Delhi also said the organisation's limited dispute settlement resources should be reserved for genuine and unresolved trade concerns.

India has rolled out several measures to promote domestic manufacturing in the solar sector, including import duties on solar cells and modules, a mandate to use locally manufactured equipment in government-backed projects, the Approved List of Models and Manufacturers (ALMM) and a production-linked incentive scheme for the sector.

Broader Trade Context

China is also pursuing a separate WTO dispute against India over measures in the automotive and renewable energy sectors. 

Despite the trade friction, China overtook the United States to become India's largest trading partner in 2025-26, with bilateral trade reaching USD 151.1 billion. India's trade deficit with China, however, widened to USD 112.16 billion during the same period.

(KNN Bureau)