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The US has dragged India to WTO on country's solar mission plan that allows only local equipment, a development to which New Delhi said it will adequately respond to.
US Trade Representative Michael Froman said America has sought WTO dispute consultations with India over the domestic content requirement in phase II of India's solar programme.
"These domestic content requirements discriminate against US exports by requiring solar power developers to use India- manufactured equipment instead of US equipment. These unfair requirements are against WTO rules, and we are standing up today for the rights of American workers and businesses," he told reporters.
Dismissing the allegations, India said its national solar mission programme is WTO-compliant and it would defend its stand in the Geneva-based multilateral body.
"India will respond adequately at the WTO...We are also very clear that India has to create domestic manufacturing capacities. India must have those capacities. Otherwise, we will end up importing for the rest of our lives," Commerce and Industry Minister Anand Sharma said.
He said the programme involves huge subsidy and public money should not be used to pay for imports.
The US already had consultations with India on solar domestic content for the phase -I of the programme.
"It is not a surprise...We will participate in the consultations. Our current policy is WTO compliant. We will defend it," Commerce Secretary Rajeev Kher said in New Delhi.
Kher, however, pointed out that several US companies have won contracts in phase II of India's National Solar Mission.
"If you look at the phase-II contracts, you will see that most of the contracts have gone to the American companies. They have participated in those bids and many of them have succeeded," he added.
India in 2010 launched Jawaharlal Nehru National Solar Mission. It aims to have 20,000 MW of grid-connected solar power by 2022.
