India's Support Measures in Auto, Renewable Energy Sectors Conform to WTO Rules: Government Official

India to Defend Manufacturing Support Measures at WTO

India has confirmed that its support measures to promote manufacturing in the automobile and renewable energy sectors are fully compliant with World Trade Organisation (WTO) norms. The country will strongly defend these measures at the WTO's dispute settlement panel meetings.

A WTO dispute settlement body panel has been established to hear a case filed by China, which has alleged that India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries, automobiles, and the policy to promote the manufacturing of electric vehicles discriminate against Chinese goods and exporters. China is a major exporter of these products.

India has expressed regret over China's decision to proceed with panel establishment, despite extensive bilateral consultation on the matter. The country maintains that its measures are fully consistent with India's rights and obligations under the WTO Agreements, including the GATT (General Agreement on Trade and Tariffs) 1994 and the Agreement on Subsidies and Countervailing Measures.

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India will participate constructively in the panel proceedings and will "vigorously" defend its measures. The country is confident that the panel will find the measures to be consistent with WTO rules.

Key Statistics

• India's exports to China contracted 14.5% to USD 14.25 billion in the last fiscal year.
• India's imports from China rose by 11.52% to USD 113.45 billion in the last fiscal year.
• India's trade deficit with China widened to USD 99.2 billion during 2024-25.