Several members of the World Trade Organization (WTO) have raised concerns over India's trade policy, particularly its Quality Control Orders (QCOs), Production Linked Incentive (PLI) scheme, import substitution policies and tariff changes, during the country's eighth Trade Policy Review (TPR). India, however, defended these measures, saying they are aimed at achieving legitimate public policy objectives and reaffirmed its commitment to an open, transparent and WTO-consistent trade regime.
As the review concluded in Geneva on Thursday, WTO members sought greater clarity on a range of policy measures that they said could affect market access and trade predictability. India's PLI scheme came under particular scrutiny.
Chairperson Ambassador Nella Pepe Tavita-Levy said, "Members sought clarification on the objectives, eligibility criteria and operation of these programmes, their consistency with WTO subsidy disciplines, the role of local content requirements, and their effects on investment, trade and participation in global value chains. Questions were also raised regarding tariff rationalization, import substitution objectives, public procurement preferences, and support measures for strategic sectors. Some Members also referenced frequent recourse to trade remedies."
During the review, India received 1,094 written questions from 44 WTO members.
Among the other issues repeatedly raised was India's expanding use of QCOs, which mandate compliance with specified standards for products sold in the domestic market. Members sought clarifications on the formulation and implementation of these standards to assess whether such measures could create barriers to trade.
India's tariff policy also came under scrutiny, including frequent revisions in customs duties and the continued use of import restrictions on certain agricultural products. Members additionally sought greater clarity on the government's import substitution strategy, localisation requirements, the minimum support price (MSP) programme for agriculture, export restrictions on food products, and sanitary and phytosanitary (SPS) measures.
On SPS measures, technical regulations and trade remedies, Commerce Secretary Rajesh Agarwal reaffirmed India's commitment to transparency, stakeholder consultations and adherence to WTO rules. He emphasized that India's QCOs are aligned with legitimate public policy objectives, while trade remedy investigations are conducted transparently and are based on objective evidence, due process and judicial oversight.You could also tighten the headline further to: "WTO members raise concerns over India's PLI, tariffs and QCOs at trade policy review."