India is currently defending nine disputes at the World Trade Organization involving challenges from multiple countries over sugar subsidies, ICT tariffs, and production-linked incentive (PLI) schemes. According to Minister of State for Commerce and Industry Jitin Prasada, these disputes involve challenges from Japan, Brazil, Australia, Guatemala, the European Union, Chinese Taipei and China. The Department of Commerce has engaged the services of the Centre for Trade and Investment Law (CTIL), the Centre for WTO Studies (CWS), and empanelled law firms to represent India's interests. Expenditure on empanelled law firms has so far amounted to about ₹2.43 crore, with further spending contingent on the progress of ongoing cases.
Three disputes relate to India's sugar support measures and export-related schemes, brought separately by Brazil, Australia and Guatemala. India has defended these measures as being consistent with its rights and obligations under WTO agreements and has appealed the panel reports, with appeals remaining pending. This comes as the World Trade Organization's latest Trade Policy Review has identified significant structural constraints that India must address to achieve its ambitious export targets. The WTO noted that India must tackle high trade costs, regulatory complexities, and infrastructure gaps if it hopes to transform into a developed economy, with the organization noting that export competitiveness is built in industrial clusters and production hubs.
Another three disputes are linked to customs duties imposed by India on certain information and communications technology (ICT) products, challenged by the EU, Japan and Chinese Taipei. While India has appealed the panel reports in the cases brought by the EU and Japan, adoption of the panel report in the dispute initiated by Chinese Taipei has been deferred as the parties negotiate a mutually agreed solution. Additionally, Japan has challenged India's safeguard measures on certain iron and steel products, with India appealing the panel report in that case, where the appeal remains pending because of the continued non-functioning of the WTO Appellate Body.
China has initiated two disputes against India, with one challenging production-linked incentive (PLI) schemes for advanced chemistry cell batteries, automobiles and auto components, electric passenger vehicles, and high-efficiency solar photovoltaic modules, as well as tariff measures on certain technology products. The second dispute concerns trade measures affecting solar cells, solar modules and information technology products. As per the minister, panel proceedings are underway in one dispute, while a panel is yet to be constituted in the other. India has consistently defended the challenged measures as being consistent with its rights and obligations under WTO rules, with the details of all nine disputes available in the public domain.
The WTO's assessment comes amid broader global trade stability, with global goods trade staying resilient through the first quarter of 2026 despite war in the Middle East. According to the WTO's July 31 statement, the volume of global merchandise trade increased by 1.9 percent during the first quarter compared to the previous quarter and by 3.2 percent compared to the first quarter of FY2025. However, the WTO cautioned that regional trade flows will likely contract as disruptions to traffic through the Strait of Hormuz persist, highlighting ongoing geopolitical challenges that could impact India's export ambitions. The WTO has also noted that agreements between 'coalitions of the willing' can gain traction over time and be subsumed into WTO frameworks, suggesting potential pathways for India's export development despite current structural constraints.
