India has blocked China’s request to establish a dispute settlement panel at the World Trade Organization (WTO) in a case challenging New Delhi’s support measures for the solar cells, modules and information technology sectors, PTI reported.China had earlier this month approached the WTO’s dispute settlement body seeking the formation of a panel after bilateral consultations failed to produce a mutually agreed solution in a dispute filed in December last year.A Geneva-based official said India rejected Beijing’s first request for setting up the panel at the Dispute Settlement Body (DSB) meeting held on May 22.China has alleged that India’s import duties on certain technology products and measures favouring domestic products over imported goods discriminate against Chinese goods. Beijing had argued that the measures violate WTO provisions under the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Subsidies and Countervailing Measures and the Agreement on Trade-Related Investment Measures.India has rejected the allegations and maintained that its measures are in line with WTO rules.India also said it was “ironic” that despite recognising the need for a “responsible and diversified supply chain”, a country estimated to control over 80 per cent of the global solar module value chain was taking measures that could hinder industry growth in other countries.Under WTO rules, the respondent country can block the first request for a panel. However, if China renews its request at the next DSB meeting, the panel would be established automatically.The panel would examine whether India’s import duties on certain high-tech goods and incentive measures for solar products are consistent with the country’s WTO commitments.India has introduced multiple measures to strengthen domestic manufacturing in the solar sector, including import duties on solar cells and modules, local sourcing requirements for some government-backed projects, the Approved List of Models and Manufacturers (ALMM), and a production-linked incentive scheme.China is also separately pursuing a WTO dispute against India relating to measures in the automotive and renewable energy sectors.China overtook the US to become India’s largest trading partner in 2025–26, with bilateral trade reaching $151.1 billion, while India’s trade deficit with China widened to $112.16 billion during the period.
