India has lost the case against the United States over a dispute on solar power components purchase.
According to reports, an appellate body of the World Trade Organization (WTO) upheld an earlier ruling that went against India’s decision to make solar power developers to use Indian-made cells and modules.
The “domestic content requirements (DCR)” under India’s National Solar Mission (NSM) enacted in 2011 led to a fall in US solar exports to India by 90 per cent.
The US filed a complaint in 2014 alleging discrimination against US exporters.
In late February this year, the WTO ruled against India’s “buy-local” provisions for large solar projects, which are entitled to subsidy and assured government procurement if the equipment is manufactured locally.
On Friday, the appeals panel upheld that ruling. The appeal ruling is final and India will now have to change the laws to comply with it.
“This report is a clear victory for American solar manufacturers and workers, and another step forward in the fight against climate change,” US Trade Representative (USTR) Michael Froman said.
The case assumes significance as India recently dragged the US to the WTO over America’s DCR and subsidies provided by eight states in the renewable energy sector.
The appeal ruling came just days after India launched a WTO complaint against subsidies for the solar industry in eight US states.