TL;DR
China has challenged India's Production Linked Incentive schemes for EVs and automobiles at the WTO, claiming they violate global trade regulations.
China has lodged a formal complaint with the World Trade Organization (WTO), challenging India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries and automobiles, as well as its broader policies aimed at promoting electric vehicle manufacturing. Beijing alleges that certain conditions embedded within these Indian measures are in violation of established global trade rules, specifically those that might be contingent upon the use of domestic components or local manufacturing.
This challenge, initiated under the WTO's dispute settlement mechanism, seeks consultations with India to address these alleged trade rule infringements. The move signals increasing international scrutiny over national industrial policies designed to bolster domestic manufacturing in strategic sectors like electric vehicles and automotive components. The outcome of these consultations could have significant implications for India's 'Make in India' initiatives and its efforts to attract global manufacturers while building local supply chains.
