China files complaint against India in WTO over EV, battery subsidies

China has filed a complaint against India in the World Trade Organization (WTO) over New Delhi’s subsidies for electric vehicles (EVs) and batteries. It has alleged that the subsidies violate global trade norms, including the principle of national treatment and constitute import substitution subsidies, which are explicitly prohibited under the multi-lateral trade rules.

These measures unfairly benefit India’s domestic industries and undermine China’s legitimate interests, Beijing said.

“It will be a request to consult ahead of a dispute, not a trade concern in committees,” said an official.

New Delhi has taken a host of measures, such as the electric-vehicle policy and the production-linked incentive scheme, to boost domestic manufacturing of EVs.

China has filed similar applications against Turkiye, Canada and the EU.

“They have sought consultations with India,” the official said. Seeking consultation is the first step of the dispute settlement process as per WTO rules.Commerce secretary Rajesh Agrawal said the commerce and industry ministry will look at the detailed submissions made by China.China’s complaint comes amid its efforts to boost exports of its electric vehicles to India, following the two sides’ plan to normalise relations after a five-year freeze in ties.

India’s trade deficit with China widened to $99.2 billion during 2024-25.