India has blocked China’s first request to establish a dispute settlement panel at the World Trade Organisation over allegations related to India’s tariffs and incentive policies for information technology and solar energy products.

The development took place during a meeting of the WTO’s Dispute Settlement Body, where India maintained that its trade and industrial measures are fully consistent with multilateral trade obligations and are aimed at supporting legitimate domestic manufacturing growth.

The dispute originates from a complaint filed by China last year after bilateral consultations between the two countries failed to produce a mutually agreed resolution.

India argued that China, which currently controls more than 80% of the global solar module value chain, should not attempt to limit the ability of other countries to develop domestic renewable energy manufacturing ecosystems and strengthen supply chain resilience.

China has alleged that India imposes customs duties on several information technology products at rates exceeding its WTO-bound tariff commitments. Beijing has also challenged India’s solar manufacturing incentive schemes, claiming that local value addition requirements and domestic content-linked benefits unfairly favour Indian manufacturers over foreign suppliers.

The dispute is closely linked to India’s broader push to expand domestic solar manufacturing capacity under policies aimed at reducing import dependence, strengthening energy security, and supporting the country’s clean energy transition.

India has increasingly promoted localisation measures such as production-linked incentives, Domestic Content Requirement (DCR) policies, and Approved List of Models and Manufacturers (ALMM) frameworks to encourage indigenous manufacturing of solar modules and photovoltaic cells.

Trade experts note that while India has blocked the first request for a panel, WTO procedures allow China to renew its request at a future meeting, where the establishment of a dispute panel could eventually become unavoidable under WTO rules.

The case is expected to draw significant attention as it sits at the intersection of global trade regulations, industrial policy, renewable energy supply chains, and strategic economic competition between major economies.