ENA Sectors 2025-10-21 17:29:26 <p><span style="font-size:14px"><strong>New Delhi, Oct 21 (KNN)</strong> China has filed an official complaint against India at the World Trade Organisation (WTO), alleging that New Delhis production-linked incentive (PLI) schemes for electric vehicles (EVs), advanced chemistry cell (ACC) batteries, and the auto sector violate global trade rules.</span></p> <p><span style="font-size:14px">Beijing claims that Indias PLI programmes favour domestic production over imports, discriminating against foreign manufacturers, including Chinese firms. The complaint, submitted to the WTOs dispute-settlement body, marks the first step in formal consultations between the two countries.</span></p> <p><span style="font-size:14px">According to the WTO communication, China believes the Indian measures breach several global trade agreements &mdash; including the Subsidies and Countervailing Measures (SCM) Agreement, the General Agreement on Tariffs and Trade (GATT) 1994, and the Trade-Related Investment Measures (TRIMs) Agreement.</span></p> <p><span style="font-size:14px">The dispute specifically targets three Indian initiatives: the PLI scheme for ACC battery storage, the PLI scheme for automobile and auto-component manufacturing, and incentives for electric passenger vehicle production. </span></p> <p><span style="font-size:14px">China argues that these schemes tie subsidies to domestic content use, thereby distorting trade and limiting fair competition.</span></p> <p><span style="font-size:14px">The move comes amid a widening trade imbalance between the two nations. In FY 2023-24, Indias exports to China fell 14.5 % to $14.25 billion, while imports rose 11.5 % to $113.45 billion &mdash; pushing Indias trade deficit with China to over $99 billion.</span></p> <p><span style="font-size:14px">India introduced the PLI schemes to boost local manufacturing, attract investment, create jobs, and reduce import dependency in key sectors like EVs and batteries. </span></p> <p><span style="font-size:14px">However, Chinas WTO challenge highlights growing friction in global supply chains for clean-energy technologies. If consultations fail, the WTO may establish a panel to review the dispute.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 43835 https://knnindia.co.in/news/newsdetails/sectors/china-drags-india-to-wto-over-pli-schemes-for-evs-and-batteries 2025-10-21 17:29:26 knnindia.co.in