India and the US are close to solving a 3-year old WTO dispute over domestic content requirement in India's solar power programme.
A top government source said that India and the US are talking over this issue and leaders from both the countries are handling it in a "mature way".
"There seems to be a willingness from both the sides that this issue should be resolved in a way that it leads to strengthening of relations between the two countries," the source said.
WTO's dispute settlement panel last year ruled that India's domestic content requirements under its solar power programme were inconsistent with the international norms. India has appealed the ruling.
"WTO is expected to come out with its ruling early this week on the appeal filed by India, but it is likely that this will be delayed by the international body as both India and the US are trying to resolve this issue through talks," another official said, conforming the developments.
The US dragged India to WTO in 2014 for its solar mission plan alleging that the programme discriminates against the US solar equipment players by requiring energy producers here to use locally manufactured cells and by offering subsidies to those who use domestic equipment.
It also alleged that forced localisation requirements restricted US exports to Indian markets.
If this issue is resolved, it will work as a catalyst in cementing India-US relations and will also revolutionise the renewable energy sector in both the countries as there are immense opportunities for businesses both the sides to gain from the solar programme.
Prime Minister Narendra Modi has been consistently working on building stronger trade ties with the US and leadership in both the countries feel that it should look at resolving this issue through talks.
On January 11, 2010, India launched the Jawaharlal Nehru National Solar Mission. The government has ambitious plans for deployment of 175 GW renewable power capacities by 2022, including 100 GW of solar and 60 GW of wind, which may require investment of around USD 150 billion in the next six years.
This was the second case where India has lost against the US in WTO. In June 2015, India lost a case when the WTO ruled that the Indian ban on import of poultry meat, eggs and live pigs from the US was inconsistent with the global norms.
