India losses solar case against US at WTO
India has lost solar case against United States at the World Trade Organisation (WTO) for in breaching of international trade rules.
In this regard, WTO’s Dispute Settlement Body (DSB) ruled that India’s domestic content requirement for National Solar Mission (NSM) discriminated against imported solar technology.
The DSB ruled that India domestic content requirement lacked domestic manufacturing capacity in solar cells and modules and there was risk of a disruption in imports.
What is the case?
United States had dragged India to WTO’s DSB in 2013 alleging that domestic content requirement on solar power developers discriminated against American and other imported solar technology.
Implications of this decision: US companies manufacturing solar equipments are looking NSM which has set an ambitious target of generating 20,000 Mega Watts (MW) solar power by 2022 as a big business potential.