GENEVA (Chatnewstv.com) — China has formally launched a trade dispute against India at the World Trade Organization, alleging that New Delhi’s incentive programs for electric vehicles and green energy components unfairly discriminate against imported goods and violate international trade rules.
The request for consultations, the first step in a formal WTO dispute, was circulated to members on Monday. It targets a range of Indian policies aimed at boosting domestic production, including incentives for advanced chemistry cell batteries, automobiles, auto components, and electric vehicles.
In its filing, Beijing claims the Indian measures are “contingent on the use of domestic over imported inputs” and are therefore inconsistent with several key trade agreements. China argues the policies create an uneven playing field that harms its manufacturers.
“These protectionist measures distort the market and undermine the global supply chain,” said a Chinese trade official in Geneva who was not authorized to speak publicly on the matter. “Fair competition is essential, and we believe these Indian policies breach commitments made under the WTO framework.”
The Indian mission to the WTO has not yet issued a public response. The challenged programs are a cornerstone of India’s “Make in India” initiative, designed to build a self-reliant manufacturing sector and reduce its carbon footprint in the critical automotive and renewable energy industries.
The dispute highlights the growing global friction over subsidies and local content requirements as nations compete to dominate the burgeoning green technology market.
“This is a classic clash between a country’s industrial policy ambitions and its WTO obligations,” said Anjali Verma, a senior fellow at the New Delhi-based Institute for Trade and Economic Studies. “India sees these incentives as crucial for developing its domestic capabilities and ensuring energy security, while China views them as a direct barrier to its exports in a sector where it is a global leader.”
According to the WTO, China’s complaint alleges violations of the Agreement on Subsidies and Countervailing Measures, the Agreement on Trade-Related Investment Measures (TRIMs), and the General Agreement on Tariffs and Trade (GATT) 1994.
The request for consultations formally initiates the dispute process. India and China now have 60 days to discuss the matter and find a mutually agreeable solution. If the consultations fail to resolve the dispute, China may then request that a WTO panel be established to adjudicate the case. The case is documented under the file number WT/DS642/1.
