US, China Challenge Modi’s ‘Make in India’ Factory Incentives

Prime Minister Narendra Modi’s ambition to turn India into a global manufacturing superpower is drawing fire from the world’s largest economies, who say his use of subsidies breaches global trade norms.

On Wednesday, the US imposed preliminary duties of 126% on solar imports from India, after determining the South Asian country unfairly subsidized manufacturing. The hefty levies are expected to effectively shut Indian solar panel makers out of the US market, analysts said.

The action came a day after the World Trade Organization’s dispute settlement body agreed to establish a panel to examine Beijing’s complaint that India’s incentive programs ...