New Delhi, Feb. 26 -- India received strong support from the US against the Chinese move to institute a panel at the World Trade Organisation's (WTO) dispute settlement body, after Beijing alleged that India's production linked incentive (PLI) schemes in the automotive and renewable energy sectors are discriminatory. According to an official summary report of the Dispute Settlement Body's (DSB) Tuesday meeting, the US strongly criticised the Chinese move that demanded constitution of a panel against India's PLI scheme. "The US, a third party, expressed disappointment over China's decision to proceed with the panel request. The US called on China to address its own non-market policies and excess capacity, saying these policies harm global supply chains," the summary report said. At the meeting, India said it regretted that China requested the establishment of a panel. "India said it participated in consultations with China in good faith and provided detailed explanations to show that its measures comply with WTO obligations. India said it remains confident its measures are fully compatible with WTO rules," the summary noted. China, however, alleged that India's incentive schemes "unfairly discriminate against foreign businesses and restrict trade, thereby violating WTO rules" including the principles of national treatment and the prohibition of import substitution subsidies, it said. China's request at DSB for the establishment of a dispute panel to rule on Indian measures in the automotive and renewable energy sectors, which include incentives for the production of advanced chemistry cell batteries, automobile and auto components, and electric vehicles. India on Wednesday rejected Beijing's allegation that PLI schemes automotive and renewable energy sectors are discriminatory against Chinese goods, and said it would "vigorously defend" its position at DSB. "India takes note of the establishment of a WTO panel in dispute DS642, initiated by China concerning certain measures relating to the automotive and renewable energy technology sectors," a commerce ministry official said, asking not to be named. India regrets China's decision to proceed with panel establishment despite extensive engagement in good-faith consultations, during which India provided detailed explanations and clarifications, he said. Consultation is the basic premise of the dispute settlement at WTO. If the consultation process fails, the aggrieved member can request DSB to establish an ad hoc panel of experts to adjudicate the case. "India is of the view that China's request for panel establishment reflects an incorrect understanding of both the design and operation of the measures at issue," he said. According to the official, India maintains that the measures challenged by China are fully consistent with India's rights and obligations under the WTO agreements, including the GATT 1994 and the Agreement on Subsidies and Countervailing Measures. "India will participate constructively in the panel proceedings and will vigorously defend its measures. India remains confident that the panel will find the measures to be consistent with WTO rules," he said....