India unlikely to face any legal fallout of PLI at WTO

DESPITE the World Trade Organization (WTO) setting up a panel to examine India’s production-linked incentive (PLI) schemes for batteries, electric vehicles and related sectors, following a request by China, India is unlikely to face any legal consequences.

- PUSHPITA DEY @New Delhi

Due to the absence of any functional appellate body at the WTO, there are no ways India can face any penalties or any other legal consequences.“WTO disputes have no legal implications as the appellate body is now broken. However, there could be political implications, if the partner country is not happy. There won't be economic impact,” said Biswajit Dhar, trade expert and former Director General of the Research and Information Systems for Developing Countries (RIS), Ministry of External Affairs.