India's manufacturing subsidies draw international scrutiny as US and China challenge growth strategy. The US imposed 126 percent preliminary duties on Indian solar imports, citing unfair subsidies, effectively blocking Indian solar makers from American markets. Simultaneously, the WTO established a panel to examine China's complaint against India's production-linked incentive scheme, which provides ₹1.91 lakh crore in support across 14 sectors including electronics, pharmaceuticals, and renewable energy. Trading partners argue these subsidies unfairly advantage domestic producers like Adani and Reliance over foreign competitors. The timing complicates India's diplomatic efforts to stabilize relations with both superpowers following recent trade tensions with the US and ongoing friction with China over border issues.
