India Confirms China Has Sought WTO Consultations Over EV and Battery Subsidy Policies; New Delhi to Respond as Per Global Trade Procedures
In a move that could escalate trade tensions, China has filed a complaint against India at the World Trade Organization (WTO), alleging that New Delhi’s subsidies for electric vehicles (EVs) and batteries violate global trade rules by giving unfair advantages to domestic manufacturers.
According to a report by The Economic Times, Beijing claims India’s electric vehicle policy and Production-Linked Incentive (PLI) scheme breach the WTO’s principle of national treatment, which mandates equal treatment for imported and domestic goods. The complaint argues that these measures constitute import substitution subsidies, which are explicitly prohibited under multilateral trade agreements.
“These measures unfairly benefit India’s domestic industries and undermine China’s legitimate interests,” Chinese officials said, adding that the filing is a request for consultations, which represents the first step in the WTO’s dispute settlement process.
India to Respond as per WTO Norms
An Indian government official confirmed the development, stating that Beijing has sought formal consultations and that India will respond in accordance with WTO procedures.
Commerce Secretary Rajesh Agrawal said the Ministry of Commerce and Industry will closely examine China’s detailed submissions before deciding on the next course of action.
The complaint marks part of a broader pattern, as China has reportedly lodged similar cases against Türkiye, Canada, and the European Union, challenging their clean technology subsidy frameworks.
More EV News
India’s Focus on Self-Reliance and Clean Mobility
India’s EV and battery manufacturing incentives are a cornerstone of its strategy to boost domestic production, cut import dependence, and accelerate clean mobility adoption.The dispute comes as China seeks to expand its EV exports to India, even as both nations work toward normalising diplomatic relations after years of tension.
