US files WTO challenge over India’s ‘discriminatory’ solar policy

The US has lodged a complaint with the World Trade Organization (WTO), alleging that India’s national solar policy discriminates against foreign products, which is a violation of world trade rule.

India, however, has hit back stating that its policy does not discriminate against foreign makers.

A statement issued by India’s the Ministry of New & Renewable Energy said that the country continues to import equipment and complies with WTO rules.

According to the complaint, India’s national solar policy, Jawaharlal Nehru National Solar Mission, is favorable to domestic products, which deters the sales of foreign manufacturers.

The programme, which was launched in 2010, requires solar energy producers to use Indian-manufactured solar cells and modules and developers using domestic equipment instead of imports are offered subsidies.

This ‘forced localisation’ has restricted the Indian market for foreign companies, the US trade office said.

The US noted that it was compelled to file a case against India after failing to resolve the issue over several years through bilateral forums.

As per the WTO rules, the US can seek the WTO dispute settlement committee to hear its complaint if consultations with India do not resolve the issue within two months.

In WTO panel discussions, the EU and Japan have also criticised the national solar policy.