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Home ›› Intl Trade ›› Import Export ›› Export Docs ›› WTO Nations Query India’s PLI, QCO, Import Substitution; New Delhi Defends Public Policy Objectives

WTO Nations Query India’s PLI, QCO, Import Substitution; New Delhi Defends Public Policy Objectives

At India's Trade Policy Review, 44 WTO members submitted over 1,090 written questions, with more than 700 answered before the meeting. Concerns focused on predictability and transparency of India's PLI schemes, QCOs, import substitution policies, and other trade measures. New Delhi defended its policies as legitimate public policy objectives.

iG
iGEN Editorial
July 23, 2026
WTO Nations Query India’s PLI, QCO, Import Substitution; New Delhi Defends Public Policy Objectives

New Delhi — At India's recent Trade Policy Review at the World Trade Organization (WTO), member nations submitted more than 1,090 written questions from 44 WTO members, according to the Economic Times. India answered over 700 of those questions before the meeting, and 68 members made interventions during the two-day review, the report said.

WTO Members Raise Concerns on Predictability and Transparency

The Chair of the Trade Policy Review Body, Ambassador Nella Pepe Tavita-Levy, said in her concluding remarks that the foremost concerns expressed by members 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," she noted.

Members also 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.

India's Defence: Legitimate Public Policy Objectives

India, on its part, stated that its Quality Control Orders (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. New Delhi also explained that 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.

Specific Programs Under Scrutiny

During the review, India's Production Linked Incentive (PLI) schemes, Make in India initiatives, semiconductor programme, and support for renewable energy manufacturing came under scrutiny — especially regarding eligibility conditions and local content requirements. Members questioned the trade-distorting potential of these measures, according to the Economic Times.

Program Key Concern Raised India's Rationale (as reported)
PLI schemes Eligibility conditions and local content requirements Public policy objectives; support domestic manufacturing
QCOs Alignment with international standards, recognition of foreign labs Achieve legitimate public policy objectives
Make in India Local content requirements Support supply chain resilience and domestic capabilities
Semiconductor programme Eligibility conditions Diversification of manufacturing
Renewable energy support Local content requirements Public policy objectives

Trade Policy Review Background

The Trade Policy Review is a regular WTO exercise that examines a member's trade and related policies. India's review came amid ongoing debates over the balance between domestic industrial policy and global trade rules. The large number of questions — over 1,090 — and the high participation of 68 members in interventions indicate significant international attention on India's trade regime.

India's response emphasized that its measures are transparent and based on objective evidence, with due process and judicial oversight for trade remedy investigations. The chair's remarks highlighted that members broadly sought greater regulatory certainty and predictability from New Delhi.


Sources: Economic Times – Foreign Trade

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