China Files WTO Complaint Against India Over Electric Vehicle and Battery Subsidies: Trade Implications and Growing Deficit

India's trade deficit with China has expanded to USD 99.2 billion in the 2024-25 fiscal year.

Beijing/New Delhi:

China has initiated a formal complaint against India at the World Trade Organization (WTO) regarding New Delhi's subsidy policies for electric vehicles (EVs) and battery production.

Commerce Secretary Rajesh Agrawal has stated that the ministry will thoroughly examine the detailed submissions presented by China.

An official confirmed that China has filed similar complaints against Turkey, Canada, and the European Union as well.

"They have requested consultations with India," the official clarified.

According to WTO regulations, requesting consultation represents the initial phase of the dispute resolution process.

If the consultations with India fail to yield a satisfactory resolution, China can request the WTO to establish a panel to adjudicate on the raised concerns.

China currently stands as India's second-largest trading partner.

During the previous fiscal year, India's exports to China decreased by 14.5 percent, falling to USD 14.25 billion compared to USD 16.66 billion in 2023-24.

Conversely, imports from China increased by 11.52 percent in 2024-25, reaching USD 113.45 billion compared to USD 101.73 billion in 2023-24.

This has resulted in India's trade deficit with China widening to USD 99.2 billion during the 2024-25 fiscal period.