New Delhi: China has filed a complaint at the World Trade Organization (WTO) against India over New Delhi's support measures for the solar and information technology sectors. It has alleged that India's tariff or import duty treatment for certain technology products, and measures that are contingent on the use of domestic over imported goods, discriminate against Chinese goods.
Beijing is a major exporter of goods under these sectors. According to a WTO communication, China has sought consultations with India under WTO's dispute settlement rules. China had claimed that these support measures and incentives infringe rules pertaining to WTO's General Agreement on Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures, and Agreement on Trade-Related Investment Measures.
"My authorities have instructed me to request consultations with the Government of India... with respect to the tariff treatment that India accords to certain technology products, and to certain measures adopted by India that are contingent upon the use of domestic over imported goods or that otherwise discriminate against goods of Chinese origin," it said.
China has alleged that India's measures affect trade in goods in the solar cell, solar module, and information technology (IT) sectors. It has raised issues over the conditions that govern the eligibility for, and disbursement of incentives under, the Production Linked Incentive Scheme: National Programme on High Efficiency Solar PV Modules. It said that the incentives provided under the Solar Module Programme are conditioned on several criteria, including a prescribed minimum local value addition requirement.
India has taken these measures to boost domestic manufacturing and reduce dependence on imported goods. Seeking consultation is the first step of the dispute settlement process as per WTO rules. If the consultations requested with India do not result in a satisfactory solution, China can request the WTO to set up a panel in the case to rule on the issue raised. China is the second-largest trading partner of India.
In the last fiscal, India's exports to China contracted 14.5 per cent to USD 14.25 billion against USD 16.66 billion in 2023-24. The imports, however, rose by 11.52 per cent to USD 113.45 billion from USD 101.73 billion. India's trade deficit with China widened to USD 99.2 billion during 2024-25.
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