China seeks WTO consultations with India over solar and IT trade measures

China has requested consultations with India at the World Trade Organisation (WTO) over measures affecting trade in solar cells, solar modules, and information technology products. The request is dated 19 December 2025 and was circulated on 23 December 2025.

The request challenges India’s tariff treatment of certain technology products and incentive conditions that, according to China, favour domestically produced goods over imports, particularly from China. The consultations relate to measures applied by India that China claims are inconsistent with India’s commitments at the WTO.

The dispute targets India’s tariffs on products listed in Annexe A of the request, which China argues exceed bound rates in India’s Schedule of Concessions. It also covers conditions under the Production Linked Incentive (PLI) Scheme, National Programme on High Efficiency Solar PV Modules, referred to as the Solar Module Programme. The programme is aligned with India’s Make in India initiative launched in 2014 to promote domestic manufacturing, innovation, and investment.

China has raised concerns over import duties and charges imposed by India, including Basic Customs Duty and Agriculture Infrastructure and Development Cess, under the Customs Tariff Act, 1975, the Customs Act, 1962, and multiple customs notifications issued between 2017 and 2025. Products cited include photovoltaic cells under HS 8541.42.00 and HS 8541.43.00, smartphones under HS 8517.13.00, and semiconductor manufacturing machinery such as HS 8486.10.00, where applied duties are alleged to exceed India’s bound commitments.

The Solar Module Programme, adopted on 7 April 2021 and authorised through a letter issued on 30 September 2022 by the Ministry of New and Renewable Energy, provides cash incentives over five years for gigawatt-scale manufacturing facilities. The scheme is implemented in two tranches and prioritises integrated manufacturing. Incentives are linked to minimum Local Value Addition levels ranging from 50 per cent to 90 per cent, increasing annually across three integration levels covering polysilicon, wafers, cells, and modules.

China has alleged that these measures violate provisions of the General Agreement on Tariffs and Trade 1994, the Agreement on Trade Related Investment Measures, and the Agreement on Subsidies and Countervailing Measures. The request claims that the measures result in the nullification or impairment of benefits accruing to China. Supporting material on alleged subsidies has been submitted in Annexe B, including documents issued by the MNRE in April 2021 and September 2022. China has stated that it reserves the right to raise additional claims or submit further evidence during consultations or any subsequent panel proceedings.

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