World Trade Organization has said in a Press Release that The U.S. has filled a dispute against India on grounds on certain measures of India relating to domestic content requirements under the Jawaharlal Nehru National Solar Mission (NSM) for solar cells and solar modules.
The United States claims that India requires solar power developers to buy and use domestic solar cells and solar modules in order to benefit from participating in the Jawaharlal Nehru NSM programme and to enter into contracts under the NSM programme or with the National Power Company.
As per this report (link) - In September, this year the Indian module manufacturing companies had filed an official complaint to Indian anti-dumping authority requesting them to start investigating solar panels made in China, Malaysia and the US. Of Nearly 1045 MW of grid connected installations, almost the entire Modules were supplied by Foreign firms, especially from China and US (First Solar).
A Look into the Domestic Solar Production in the Country:
Domestic production of solar PV modules based on crystalline silicon technology during the year 2011 was around 300MW. Further, a total capacity of 268MW of Grid- connected Solar PV power plants have been set up under JNNSM so far (as on 31.10.2012), of which plants with 120 MW aggregate capacity are using domestically produced module, which corresponds to about 40% of the domestic production. Off-grid solar PV systems with aggregate capacity of 31 MW have also been deployed under JNNSM so far (as on 31.10.2012), of which 99% are using domestically produced modules.