The World Trade Organization has ruled that India's solar power purchase norms are "not justified" under international trade rules. The Economic Times reported that the United States had moved the WTO in February, 2013, against India's rules that prohibit solar power developers from using cells, modules or solar technology unless they are manufactured in the country. The WTO ruled that such localisation policies are "not justified" under Agreement on Trade-Related Investment Measures and General Agreement on Tariffs and Trade.

A report by NDTV said India may decide to move the WTO Appellate Body against the ruling. New Delhi has three months to consult with the New and Renewable Energy Ministry and file an appeal with the panel. An American group of environmentalists also slammed the ruling, reported the Business Standard. Sierra Club's Responsible Trade Program said the policies for which the US dragged India to court are similar to the ones governing trade in almost half of the states in the US. "The WTO ruling is a step in the wrong direction, away from the climate progress that the global community committed to achieve in December's Paris climate agreement," Ilana Solomon, director of the group said.