ALSO READ: US sets initial duties on Indian solar imports at 126%<\/a> <\/p>\n
The action came a day after the World Trade Organization\u2019s dispute settlement body agreed to establish a panel to examine Beijing\u2019s complaint that India\u2019s incentive programs in automotive and renewable energy technologies unfairly favor domestic goods over imports, putting Chinese products at a disadvantage. The panel was set up after consultations between the two countries \u2014 the first step in the WTO dispute process \u2014 failed to resolve China\u2019s challenge to New Delhi\u2019s sector-specific subsidies.<\/p>\n
At the heart of these disputes is India\u2019s production-linked incentive scheme, which was introduced by the Modi government in 2020 to boost domestic manufacturing. The program, spanning 14 sectors from electronics and pharmaceuticals to solar modules and medical devices, carries a total outlay of 1.91 trillion rupees ($21 billion).<\/p>\n
India\u2019s Ministry of Commerce and Industry did not respond to a request for comment. However, officials in New Delhi, who declined to be identified discussing a sensitive matter, said India would strongly defend its incentive programs, arguing they fully comply with the WTO rules.<\/p>\n While the programs are central to India\u2019s goal of raising manufacturing\u2019s share of gross domestic product to around 25%, mounting pressure from key trading partners could become a headache for New Delhi. Currently, manufacturing makes up about 17% of GDP. <\/p>\n \u201cWithout schemes like PLI, revival of manufacturing looks difficult,\u201d said Biswajit Dhar, a New Delhi-based independent trade economist and former professor at Jawaharlal Nehru University. At the same time, India needs to explore alternative ways to support industries, such as investing more in technology and innovation, he added.<\/p>\n","protected":false},"excerpt":{"rendered":"Prime Minister Narendra Modi\u2019s ambition to turn India into a global manufacturing superpower is drawing fire from the…\n","protected":false},"author":2,"featured_media":318677,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[148530,72,113,61,148529,148526,20107,60,116163,148525,148527,148528,148522,148523,148524,148531],"class_list":["post-318676","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-adani-enterprises-ltd","tag-business","tag-economy","tag-ie","tag-india-china-ties","tag-india-solar-companies","tag-india-us-trade-relations","tag-ireland","tag-reliance-industries-ltd","tag-solar-companies","tag-solar-company-stocks","tag-solar-company-stocks-india","tag-solar-incentives","tag-solar-tariffs","tag-us-tariffs-on-india-solar","tag-waaree-energies"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/318676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=318676"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/318676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/318677"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=318676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=318676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=318676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"ET](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2025\/10\/118783427.cms.png\")
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Trading partners argue that these subsidies tilt the playing field toward local producers. In the solar sector, companies including Waaree Energies<\/a> Ltd., Adani Enterprises Ltd<\/a>, and Reliance Industries Ltd<\/a>. have benefited from government support through production-linked incentives and various non-tariff barriers.
The backlash comes even as India works to steady relations with both US and China. New Delhi and Washington have only just struck a deal to end months of trade friction, a period when India was saddled with some of the highest US tariffs in Asia. Meanwhile, India is also seeking to stabilize ties with Beijing after relations plunged following the 2020 border clashes.Both the US and China have faced scrutiny over their own subsidy regimes. In 2024, Beijing took issue with certain provisions of the US Inflation Reduction Act of 2022, alleging the subsidies are contingent on the use of domestic goods or discriminate against products of Chinese origin. Meanwhile, Europe has accused Beijing of using extensive subsidies to propel its electric vehicle and solar sectors.<\/p>\n