WTO rules against India in solar dispute with US: report

The panel found India violated global trade rules by imposing local content requirements for solar cells and solar modules.

India has said it expects peak solar power demand to double over the next five years.

The World Trade Organization (WTO) has ruled against India in a dispute with the United States over its solar power program, an Indian newspaper reported on Wednesday.

It quoted an unnamed official from the Indian Commerce Ministry as saying the country planned to appeal the decision, made after the United States complained about domestic content requirements in a program aimed at easing chronic energy shortages in India.

India has said it expects peak power demand to double over the next five years from around 1,40,000 megawatts. To help meet that demand, India wants 1,00,000 MW of new capacity from solar panels, with at least 8,000 MW from locally made cells.

The newspaper said the WTO dispute settlement panel, in a confidential report to New Delhi and Washington, found India violated global trade rules by imposing local content requirements for solar cells and solar modules, and also struck down incentive policies such as subsidies provided for domestic solar companies to manufacture cells and solar modules.

The WTO circulates decisions on disputes to the parties before they are made public.

Source: The Hindu

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