India stopped China’s first attempt at the World Trade Organization to set up a dispute panel on solar sector support. At the WTO meeting in Geneva on May 22, India said its policies follow trade rules and help local manufacturing.
China argued that India’s import duties and incentives hurt Chinese exports. It claimed these steps break WTO agreements on tariffs, subsidies and investment. India replied that its measures are fair and needed to grow domestic industry.
To boost solar power, India introduced several steps. It placed duties on imported solar cells and modules. It asked government projects to use locally made equipment. It created an approved list of models and manufacturers. It also launched a production‑linked incentive scheme.
China controls more than 80 percent of the global solar supply chain. It can raise the request again at the next WTO meeting. Under WTO rules, a panel forms automatically on the second request.
This case adds to wider trade tensions. Bilateral trade between India and China touched 151.1 billion dollars in 2025‑26. India’s deficit widened to 112.16 billion dollars. The solar dispute will test India’s balance between domestic push and global obligations.