China files WTO complaint against India over EV, battery subsidies

China has lodged a complaint at the World Trade Organization (WTO) against India, alleging that New Delhi’s subsidies for electric vehicles (EVs) and batteries violate global trade rules.

Commerce Secretary Rajesh Agrawal said the ministry would review the detailed submissions made by Beijing.

An official aware of the development said China has also filed similar complaints against Turkiye, Canada and the European Union.

“They have sought consultations with India,” the official said, referring to the first step in the WTO’s dispute settlement process.

Under WTO rules, if the consultations fail to resolve the matter, China can request the establishment of a dispute panel to examine the issue.

China is India’s second-largest trading partner. Bilateral trade between the two nations remains heavily skewed in Beijing’s favour.

In the fiscal year 2024–25, India’s exports to China contracted 14.5% to USD 14.25 billion from USD 16.66 billion the previous year, while imports from China rose 11.5% to USD 113.45 billion.

India’s trade deficit with China widened to USD 99.2 billion in 2024–25, up from USD 85.1 billion in 2023–24.

According to the commerce ministry data, China was India's top trading partner from 2013-14 till 2017-18 and also in 2020-21. Before China, the UAE was the country's largest trading partner. The US has been the largest partner since 2021-22.