TL;DR
China has filed a WTO complaint against India's EV and battery subsidies, alleging unfair competitive advantage and urging India to rectify the policies.
China has lodged a formal complaint with the World Trade Organization (WTO) against India's subsidies for electric vehicles (EVs) and battery manufacturing. Beijing alleges that these incentives provide an unfair competitive advantage to Indian domestic industries, thereby harming China's economic interests. The Chinese Commerce Ministry has urged India to rectify these "wrongdoings" and stated its intent to take firm measures to safeguard its domestic industries' legitimate rights.
This move marks the initial phase of the WTO's dispute resolution mechanism, giving India 60 days to respond. India's subsidy programs, including production-linked incentive (PLI) schemes for advanced chemistry cells and the auto sector, along with demand incentives like the PM E-Drive scheme, aim to boost local EV manufacturing and adoption. The outcome of this dispute could have significant implications for India's EV policy framework and its global trade relations.