Subsidies on electric vehicles (EVs) and batteries has India and China sparring at the World Trade Organisation (WTO), where China filed a complaint against India.
Confirming the move, Commerce Secretary, Rajesh Agarwal, said the Ministry of Commerce and Industry will look at the detailed submissions made by China.
Another official of the Indian government, while sharing that China had filed similar complaints against Turkiye, Canada, and the EU, added that the former had also sought consultations with India.
Also Read: India, Taiwan want ICT import duty ruling deferred
“They have sought consultations with India,” the official said, adding that seeking consultation is the first step of the dispute settlement process as per WTO rules.
However, if the consultations requested with India do not result in a satisfactory solution, the EU can request that the WTO set up a panel to rule on the issue raised.
China is the second-largest trading partner of India. In 2024-25, India’s exports to China contracted 14.5 per cent to USD 14.25 billion against USD 16.66 billion in 2023-24.
The imports, however, rose by 11.52 per cent in 2024-25 to USD 113.45 billion against USD 101.73 billion in 2023-24.
India’s trade deficit with China has widened to USD 99.2 billion during 2024-25.