Domestic content requirement of India's solar mission on 10 February 2014 was challenged by the United States, which it alleged as discriminatory and against international norms including the laws of WTO. It has badly affected the American domestic solar panel manufacturing industry.
The decision was taken by US as a measure to protect 10000 American jobs in solar industry and to have a significant pie in the second largest solar market of the world. Domestic content requirements of India’s solar mission in Phase II discriminates against US solar cells and modules by requiring to use India-manufactured solar cells and modules instead of US or other imported equipment.
At present the WTO dispute consultations with India has been requested by US in relation of concerning domestic content requirements in Phase II of India’s Solar Mission. Union Cabinet in October 2013 approved the measures governing the implementation of Phase II of its National Solar Mission. Under the Phase II of the Solar Mission implementation, India has imposed domestic content requirements under which solar power developers should use Indian-manufactured solar cells and modules instead of US or other imported equipment.
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