World Trade Organization Establishes Panel to Examine China's Trade Dispute with India Over Auto and Renewable Energy Measures

World Trade Organisation Establishes Panel in China-India Dispute

Key Highlights:

• The World Trade Organisation's Dispute Settlement Body has established a panel to examine certain Indian measures in the automotive and renewable energy sectors at the request of China.
• The dispute revolves around India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries, automobiles, and electric vehicles, which China alleges discriminate against Chinese goods.

Background:

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As part of the dispute settlement process, China filed a complaint against India's measures in the automotive and renewable energy sectors, citing alleged discrimination against Chinese goods. The consultations held on November 25, 2025, and January 6, 2026, failed to resolve the dispute, leading to the establishment of a panel to examine the issue.

Dispute Settlement Process:

The dispute settlement process involves seeking consultation as the first step, followed by the establishment of a panel if the consultations fail to result in a satisfactory solution. India and China are members of the World Trade Organisation, and China has filed a complaint under the dispute settlement mechanism, alleging that India's support measures are harming its exports of certain goods.

Trade Figures:

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• India's exports to China contracted 14.5% to $14.25 billion in 2024-25 against $16.66 billion in 2023-24.
• India's imports from China rose by 11.52% in 2024-25 to $113.45 billion against $101.73 billion in 2023-24.
• India's trade deficit with China widened to $99.2 billion during 2024-25.