US raises howl over India's solar domestic content requirement

The United States is protesting the domestic content requirements in India’s solar energy sector.

The requirement prevents the importation of foreign-made solar panels.

The issue was brought up again at a recent meeting between the US Trade Representative (USTR) and the Indian commerce ministry.

The domestic content requirement envisages installation of 20,000 MW of grid-connected solar power and 2,000 MW of off-grid solar power by 2022, and has garnered a wide spectrum of reactions varying from high praise to loathing.

Deputy USTR Demetrios Marantis said that the local content requirement under the National Solar Mission is "a discriminatory policy not consistent with the WTO principles."

To assuage the concerns of the US, Commerce Secretary SR Rao said that the 30% domestic content requirement has been kept to provide a boost to the domestic manufacturing. "The policies are not discriminatory as both Indian and foreign companies are subject to the same requirements," he added.