India has failed to comply with a World Trade Organization ruling on solar power, the United States will tell the WTO's dispute settlement body (DSB) next month, triggering a fresh round of litigation, according to an agenda issued on Wednesday.
S. solar exports to India had fallen by 90 percent from 2011.
Such "local content" requirements are banned because they discriminate in favour of domestic firms and against foreign competitors.
Under an agreement with the United States, India had until Dec. 14 to comply with the ruling and it told the DSB last week that it had done so.
"Indian authorities have held extensive internal stakeholder consultations since the adoption of the rulings and recommendations of the DSB to fully comply with them," India said in its statement to the DSB.
"Accordingly, in compliance with the findings and recommendations of the DSB in this dispute, India has ceased to impose any measures as found inconsistent in the DSB's findings and recommendations."
If India is found not to have complied, Washington could ask the WTO for permission to impose trade sanctions on India. But the WTO dispute system is struggling to process a large number of highly complex disputes, so the legal process is likely to continue for a year or more.
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