New Delhi: China has filed a complaint at the World Trade Organisation (WTO) against India, challenging New Delhi’s support measures for the solar and information technology sectors, according to a WTO communication. Beijing 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. China is a major exporter of products in these sectors.
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According to the WTO communication, China has sought consultations with India under the dispute settlement rules of the World Trade Organisation. “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 claimed that these support measures and incentives infringe provisions of the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.
China has alleged that India’s measures affect trade in goods in the solar cell, solar module and information technology sectors.
It has raised concerns over the conditions governing eligibility for, and disbursement of incentives under the Production Linked Incentive Scheme: National Programme on High Efficiency Solar PV Modules. According to China, incentives 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.
Under WTO rules, seeking consultations is the first step in the dispute settlement process. If consultations with India do not lead to a satisfactory solution, China can request the WTO to set up a panel to rule on the issues raised.
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China is the second-largest trading partner of India. In the last fiscal year, India’s exports to China contracted 14.5 percent to USD 14.25 billion, compared with USD 16.66 billion in 2023–24. Imports from China, however, rose 11.52 percent to USD 113.45 billion from USD 101.73 billion.
As a result, India’s trade deficit with China widened to USD 99.2 billion in 2024–25.
