WTO Establishes Panel to Examine China’s Complaint on India’s Auto, Renewable PLI Policies

The World Trade Organisation (WTO) has established a dispute panel to examine China’s complaint regarding India’s policies in the automotive and renewable energy sectors. The panel follows failed bilateral consultations on November 25, 2025, and January 6, 2026, aimed at resolving the issue through dialogue.

China alleges that India’s Production Linked Incentive (PLI) schemes and other measures discriminate against Chinese goods, particularly in advanced chemistry cell batteries and electric vehicle manufacturing, potentially violating WTO rules. The panel will now formally review these claims.

It may be noted that China is India’s second-largest trading partner, yet the trade balance remains heavily skewed. In 2024‑25, India’s exports to China dropped 14.5 percent to USD 14.25 billion, while imports rose 11.52 percent to USD 113.45 billion, pushing the trade deficit to USD 99.2 billion.

Officials say the panel is part of the WTO’s formal dispute settlement process, following unsuccessful consultations, and its findings will be closely watched by stakeholders in the automotive and renewable energy sectors, as well as by policymakers shaping bilateral trade.