WTO Establishes Panel To Review India’s Solar Incentives And Import Tariffs Following China’s Complaint

A new trade dispute between India and China has moved to the next stage at the World Trade Organization (WTO), bringing renewed attention to India’s solar energy policies and import duties. During a meeting of the WTO’s Dispute Settlement Body (DSB) held on June 23, 2026, member countries agreed to China’s request to establish a dispute panel to examine certain trade measures implemented by India.

The case mainly concerns India’s policies related to imported solar cells, solar modules, and selected information technology products. China has alleged that some of India’s tariff measures and incentive schemes are inconsistent with WTO rules and unfairly favor domestic manufacturers.

According to China, India provides incentives for solar energy products that are linked to the use of locally manufactured components. China argues that such conditions disadvantage imported products and create barriers for foreign suppliers. It claims that these measures violate several WTO agreements, including the General Agreement on Tariffs and Trade (GATT), the Agreement on Subsidies and Countervailing Measures, and the Agreement on Trade-Related Investment Measures.

The establishment of the dispute panel follows unsuccessful consultations between the two countries. China had initially requested the formation of a panel earlier, but India blocked that request during a DSB meeting held on May 22, 2026. Under WTO procedures, a member can block the first request for a panel, but a second request is automatically approved unless all WTO members agree to reject it.

As this was China’s second request, the panel was formally established during the June 23 meeting. China decided to proceed after discussions with India failed to resolve the issues raised in the complaint.

India expressed disappointment over China’s decision to push for a formal dispute process. Indian representatives maintained that the country’s measures are fully consistent with WTO obligations and stated that this position had already been explained during previous consultations. India also reiterated that its policies are designed in accordance with international trade rules while supporting domestic manufacturing and clean energy development.

The dispute has attracted significant global attention because it involves the rapidly growing solar energy sector and international supply chains. Many countries have shown interest in the case due to its potential impact on global trade and renewable energy markets.

Several WTO members, including Australia, Brazil, Canada, the European Union, Japan, the Republic of Korea, the Philippines, the Russian Federation, Singapore, Türkiye, the United Kingdom, and the United States, have reserved their third-party rights in the dispute. This allows them to participate in the proceedings and present their views before the panel.

The newly established WTO panel will now begin its review of the case. Its findings will determine whether India’s solar incentive programs and related trade measures comply with international trade commitments under WTO rules.