TL;DR
China has filed a complaint at the WTO against India's Production Linked Incentive schemes for EVs and automobiles, alleging violations of global trade rules.
China has formally challenged certain conditions within India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries and automobiles, as well as its policy to promote electric vehicle manufacturing, at the World Trade Organization (WTO). Beijing alleges that these measures violate global trade rules and has initiated consultations under the WTO's dispute settlement mechanism.
The complaint centers on conditions that China claims are contingent upon the use of domestic content or local production, which could be seen as discriminatory against foreign manufacturers. India's PLI schemes are designed to boost local manufacturing and attract investments in critical sectors, including the rapidly growing electric vehicle industry, by offering incentives linked to production and sales.
This challenge underscores the ongoing trade tensions and differing approaches to incentivizing domestic industries, particularly in the strategic EV sector. The outcome of these consultations at the WTO could have significant implications for India's industrial policies and its efforts to become a global manufacturing hub for electric vehicles.
