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China is India’s second-largest trading partner. India’s exports to China fell 14.5% to USD 14.25 billion in 2024-25, while imports rose 11.5% to USD 113.45 billion, widening the trade deficit to USD 99.2 billion. (File Photo)
China has lodged a formal complaint against India with the World Trade Organization (WTO), challenging New Delhi’s subsidies for electric vehicles (EVs) and batteries. The Commerce Ministry will examine China’s detailed submissions.
According to China’s Commerce Ministry, India’s measures violate multiple WTO obligations, including the principle of national treatment, and amount to prohibited import substitution subsidies. The ministry claimed that these policies unfairly benefit India’s domestic EV industry and undermine China’s commercial interests, PTI reported.
The complaint comes as Beijing seeks to expand exports of its electric vehicles to India, following the two countries’ efforts to normalise ties after a five-year freeze triggered by the Eastern Ladakh standoff. Given the size of India’s auto market, Chinese EV manufacturers view it as a key opportunity to boost overseas sales.
Facing domestic overcapacity, declining profits, and intense price competition, Chinese EV makers such as BYD are increasingly targeting overseas markets in Asia and the EU.
As per PTI, India’s Commerce Secretary Rajesh Agrawal said the ministry will examine China’s detailed submissions. An official added that China has filed similar WTO consultations against Turkey, Canada, and the European Union. Under WTO rules, seeking consultations is the first step in dispute resolution; if no satisfactory solution is reached, a panel can be set up to rule on the issue.
China is India’s second-largest trading partner. India’s exports to China fell 14.5 per cent to USD 14.25 billion in 2024-25, while imports rose 11.5 per cent to USD 113.45 billion, widening the trade deficit to USD 99.2 billion.
According to the China Passenger Car Association, 50 Chinese EV makers exported 2.01 million pure electric and plug-in hybrid vehicles in the first eight months of 2025, a 51 per cent increase over the same period last year. However, these manufacturers are facing restrictions abroad, including a 27 per cent tariff imposed by the EU to limit Chinese EV sales.
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India has rolled out several measures to boost domestic EV production, including the Electric Vehicle Policy and the Production-Linked Incentive (PLI) scheme.
(With Inputs from PTI)
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