India Blocks China’s WTO Panel Request on Auto, Battery and EV Incentives

India has blocked China’s request to establish a World Trade Organisation (WTO) dispute panel over India's incentive schemes for the automobile, battery and electric vehicle sectors, according to a Geneva-based trade official

China moved the WTO after bilateral consultations held on November 25, 2025, and January 6, 2026, failed to resolve the dispute. In its complaint, Beijing alleged that certain conditions under India’s Production Linked Incentive (PLI) schemes and electric vehicle manufacturing policies discriminate against Chinese products and violate global trade rules.

In a communication to the WTO dated January 16, China said it had sought consultations with India to reach a mutually agreed solution, but those talks were unsuccessful. It subsequently requested the WTO’s Dispute Settlement Body (DSB) to set up a panel to examine the matter, and asked that the request be placed on the agenda of the DSB meeting scheduled for January 27 in Geneva.

China has challenged three key Indian programmes: the PLI scheme for the Automobile and Auto Component Industry, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, and the Scheme to Promote Manufacturing of Electric Passenger Cars in India. According to Beijing, these measures are contingent on the use of domestically produced goods over imported ones.

The complaint argues that the Indian measures are inconsistent with the country’s obligations under the Agreement on Subsidies and Countervailing Measures (SCM), the General Agreement on Tariffs and Trade (GATT) 1994, and the Trade-Related Investment Measures (TRIMs) Agreement. China maintains that the schemes unfairly disadvantage Chinese exports in the auto, battery and electric vehicle segments.

Under WTO rules, consultations are the first step in the dispute settlement process. If they fail to resolve the issue, the complainant may request the establishment of a panel to rule on the matter. India’s move to block the panel request delays the formal adjudication process at the multilateral trade body.

Both India and China are members of the WTO. China is currently India’s second-largest trading partner, and the dispute adds to a growing list of trade frictions between the two countries over industrial support policies and market access.