WTO nations query India’s PLI, QCO, import substitution, New Delhi says public policy objectives key

New Delhi: Members of the World Trade Organization (WTO) raised questions at India’s Quality Control Orders (QCO), “abrupt tariff changes”, Production Linked Incentive (PLI) schemes, agricultural restrictions, regulatory certainty, industrial tariffs, the minimum support and price programme, among others at New Delhi’s eighth trade policy review (TPR) which concluded Thursday.

India, on its part, said that its QCOs are intended to achieve legitimate public policy objectives, while trade remedy investigations are conducted transparently, based on objective evidence, due process and judicial oversight and its agricultural tariff structure is designed to safeguard the livelihoods of millions of small, low-income and resource-poor farmers while industrial tariffs support supply chain resilience, diversification and domestic manufacturing capabilities in an evolving global economic environment.

“Foremost among Members' concerns, both expressed in prior questions and made in statements in the last two days, were predictability and transparency. Members raised points about abrupt tariff changes, unexpected export restrictions, complex licensing requirements, lengthy investment approvals and a pack of regulatory certainty more generally,” Chair of the Trade Policy Review Body, Ambassador Nella Pepe Tavita-Levy said in her concluding remarks.


New Delhi received more than 1,090 written questions from 44 WTO members, over 700 of which were answered before the meeting and 68 members made interventions.

Members sought further clarifications on consultation procedures, reasons for delays in conducting factory visits, clear implementation timelines, alignment with international standards, simplified conformity assessment requirements, and more recognition of foreign laboratories and certification bodies.

“Members highlighted the burden delays placed on their exporters and the importance of transparency, proportionality, and predictability,” Tavita-Levy said, adding that some delegations also expressed concern over public procurement preferences, import substitution policies and India's frequent use of trade remedy measures.

India further highlighted that the overall trade coverage of its trade remedy measures remains limited and that it continues to apply the Lesser Duty Rule in its anti-dumping framework.

At the two-day review, India’s PLI schemes, Make in India initiatives, semiconductor programme and support for renewable energy manufacturing especially on issues falter to eligibility conditions and local content requirements, also came under scrutiny.