India Blocks China's Request for WTO Dispute Panel on Solar Sector Support Measures

India Blocks China's WTO Dispute Panel Request Over Solar, IT Sectors

India has blocked China's request to establish a dispute panel at the World Trade Organization (WTO) in a case filed by Beijing against New Delhi's support measures for the solar cells, modules, and information technology sectors. The decision was made at the Dispute Settlement Body (DSB) meeting in Geneva on May 22.

The request from China follows the failure of bilateral consultations on reaching a mutually-agreed solution on the dispute filed by China in December last year. China has alleged that India's tariff or import duty on certain technology products, and measures like the use of domestic products over imported goods, discriminate against Chinese goods. Beijing claims that these support measures and incentives infringe rules pertaining to the WTO's General Agreement on Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures, and Agreement on Trade-Related Investment Measures.

India, however, has refuted China's allegations, stating that the measures are completely consistent with WTO rules. India also pointed out the irony that a country estimated to control over 80% of the global solar module value chain still finds it necessary to take measures that hinder the legitimate growth of the industry in other countries.

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WTO Dispute Settlement Process

According to WTO norms, China can renew its request at the next DSB meeting. When consultations have failed, member governments are entitled to ask for a panel to be set up to examine the dispute. The respondent can reject the first request, but a panel is automatically established at the second request. The panel will determine whether import duties applied by India on certain imported high-tech goods, as well as certain incentive measures for solar energy products, are consistent with India's WTO commitments.

India's Support Measures for Solar Sector

India has rolled out a series of measures to promote domestic manufacturing in the solar sector. These include imposing duties on imported solar cells and modules, mandating the use of locally manufactured solar equipment in certain government-backed projects. India has also introduced the Approved List of Models and Manufacturers (ALMM) to encourage procurement from domestic producers, besides a production-linked incentive scheme for the sector.

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China's Separate Dispute against India

China is also pursuing a separate dispute against India in the organization over India's measures in the automotive and renewable energy sectors. China has overtaken the US to emerge as India's largest trading partner in 2025-26, with bilateral trade reaching USD 151.1 billion. The country's trade deficit with Beijing widened to USD 112.16 billion during the period.

Note: The trade data is for the period 2025-26.