India objects to $280-billion US programme to promote chipmaking

India and the US have also signed a Memorandum of Understanding (MoU) earlier this month

India has raised objection to the United States’ $280 billion ‘Chips for America’ programme, claiming it violates World Trade Organisation (WTO) provisions and puts competitive manufacturers at disadvantage.

New Delhi raised the issue during the recent Trade Policy Review of the USA, seeking clarifications from the US on the ambitious CHIPS Act.

“This (Chips Act) puts more competitive manufacturers globally at a distinct disadvantage. What steps are proposed to be taken to create an even playing field for global manufacturers in these areas, especially from the developing world?” India asked.

The US, however, denied the charge.

“The United States disagrees with the characterization in