India losses solar case against US at WTO

India has lost solar case against United States at the World Trade Organisation (WTO).
Dispute Settlement Body (DSB) of WTO has ruled that, India’s requirement of only domestic solar equipment’s for its ambitious Jawaharlal Nehru National Solar Mission (JNNSM) is inconsistent with the international trade norms.

  • In 2014, US had dragged India in DSB of WTO against its JNNSM which favoured only to use locally manufactured solar equipment.
  • US in its appeal had alleged that, the state sponsored programme of India has discriminated importation of solar equipment manufactured in US.

Implications of this decision: US companies manufacturing solar equipment are looking JNNSM which has set an ambitious target of generating 20,000 Mega Watts (MW) solar power by 2022 as a big business potential.
Note: This is second case India has lost at WTO against US. Earlier in June 2015, WTO had ruled against India’s ban on import of poultry meat, eggs and live pigs from US is inconsistent with international trade norms.



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