The WTO committee’s draft 2025 report confirmed that India remained distinguished among the many nations whose insurance policies had been challenged, even because it actively participated in technical work on tariff schedules and notifications.
In accordance with the report, India’s quantitative restrictions on pulses additionally got here below repeated scrutiny from Australia, Canada and the European Union. Its QCOs on tyres and air conditioners additionally attracted queries from members together with the European Union, Indonesia, Chinese language Taipei (Taiwan), and Thailand, who argued that such measures might restrict market entry and improve the compliance burden for exporters. Solely China raised a priority for pocket lighters, whereas Japan and Thailand did so for air conditioners. Apparently, the US didn’t raised any issues about India’s transfer to introduce a sequence of QCOs.
QCOs are necessary authorities laws that require particular merchandise to adapt to designated Indian requirements and carry the Bureau of Indian Requirements (BIS) mark earlier than they are often manufactured, offered, or imported. Issued by numerous ministries, QCOs shield shoppers from substandard items, promote high quality, and forestall the import of low-quality objects by serving as a non-tariff barrier.
India is changing into self-reliant in air conditioners as the federal government’s production-linked incentive (PLI) scheme for white items has considerably diminished imports of compressors, and compressor manufacturing is predicted to the touch 8 million items by 2028-29, following three PLI phases rolled out between April 2021 and January 2024, as per a Mint report printed on 8 April.
Commerce specialists famous that India was in a fragile place. “Whereas utilizing QCOs and import restrictions to spice up home manufacturing, its exporters face challenges from sustainability-linked guidelines and reciprocal tariffs. This twin strain is drawing India deeper into WTO disputes even because it negotiates bilateral commerce offers,” mentioned Vinod Kumar, president, India SME Discussion board.
Mint reported on 9 September that India was below recent scrutiny on the WTO over its failure to reply to farm trade-related queries that had amassed for greater than a decade. As per a secretariat report, the nation has the longest checklist of pending queries on the WTO. The up to date WTO be aware, issued on 8 September, listed 186 unanswered questions from 2013 to 2023, and one other 51 from 2024 onwards, of which 30 had been pending as of 5 September.
Finger on the pulses
India’s quantitative restrictions on pulses imports – that are significantly related given the nation’s standing because the world’s largest purchaser of lentils and peas – confronted pushback from Australia, Canada and the European Union. Australia and Canada are main suppliers of pulses to India, which additionally imports smaller portions from EU members resembling France, the Netherlands and Belgium.
In accordance with the WTO doc, the EU supported Australia’s and Canada’s stand on import restrictions for pulses and urged India to have a extra predictable, open, and clear import and tariff regime for sure forms of pulses.
India has tightened its import coverage on pulses by reintroducing duties on a number of varieties whereas briefly permitting duty-free entry to some. From 1 April 2025, imports of chana (black gram) are topic to a ten% obligation after the federal government ended the sooner exemption. Equally, from 8 March 2025, lentils (masoor) started attracting a ten% levy, comprising a 5% primary customs obligation and a 5% agriculture infrastructure and growth cess.
Imports of moong proceed to face restrictions consistent with the federal government’s broader technique of defending home farmers. In distinction, yellow peas and tur dal have been granted duty-free entry till 31 March 2026 to ease native provide shortages.
Different import licensing procedures and regulatory necessities had been flagged as potential obstacles to commerce, resembling import restrictions on prescribed drugs, and restrictions on wood boards and viscose staple fibre – each flagged by Thailand.
In December 2022, the ministry of textiles notified the viscose staple fibre QCO, whereas the ministry of commerce and business issued the wood-based boards QCO in March 2024. In September 2025, India imposed import restrictions on a chemical substances used within the pharmaceutical business, efficient till 30 September 2026.
Queries despatched to the commerce ministry remained unanswered on the time of publishing.
India’s defence
Defending these measures, India maintained that the QCOs had been meant to make sure client security, curb substandard imports, and help home business in assembly high quality benchmarks. New Delhi argued that the introduction of requirements and restrictions was effectively inside the WTO’s guidelines, so long as they had been non-discriminatory and justified on the grounds of security and public curiosity.
On import restrictions for pulses, New Delhi mentioned in its submission at a proper assembly on 9 April that the measures adopted by India had been undertaken to keep up meals and diet safety. “That is an space of nice significance to our economic system, and the insurance policies on imports are repeatedly reviewed and up to date. The commerce measures relevant to the import of pulses are in compliance with the related WTO agreements and the required procedures of these agreements,” it acknowledged. India additionally highlighted its compliance with multilateral obligations by submitting its biennial notification on quantitative restrictions for 2024-26.
Indian additionally mentioned that below Article XX (normal exemptions) of the Basic Settlement on Tariffs and Commerce, nations had been allowed to undertake guidelines to guard human, animal or vegetation, or for public curiosity, offered these guidelines had been honest and never used to discriminate or block commerce.
Counterattack
On the WTO panel discussions, India additionally pushed again towards the obstacles it faces in international markets. New Delhi voiced concern over the European Union’s deforestation-free commodities laws, which might disrupt Indian shipments of espresso, leather-based and several other agricultural items. It additionally flagged the EU’s carbon border adjustment mechanism, aka carbon tax, which is predicted to boost prices for metal and aluminium exporters, as trade-restrictive. India has additionally joined wider deliberations on supply-chain resilience and the ‘greening’ of the harmonized system, exhibiting its intent to affect discussions on environmental measures.
As well as, India raised the problems of Thailand’s market entry for agricultural commodities and meals merchandise, and market entry points confronted by the pharma sector. All these points might be mentioned at a proper assembly of the committee on 15-16 October.
