Modi govt's masterstroke over EV subsidies rattles China, Xi Jinping moves against India at...

China has filed a complaint against India in the World Trade Organisation (WTO) over New Delhi's subsidies for electric vehicles (EVs) and batteries. The country alleged that the incentives give domestic industries an unfair competitive advantage, Reuters reported. The ministry added that it would take 'firm measures' to effectively safeguard the legitimate rights and interests of its domestic industries. 

What did India say?

Commerce Secretary Rajesh Agrawal said that the ministry will look at the detailed submissions made by China. An official said that China has also filed similar applications against Turkiye, Canada and the EU. "They have sought consultations with India," the official said.

What next?

Seeking consultation is the first step of the dispute settlement process as per WTO rules. If the consultations requested with India do not result in a satisfactory solution, the EU can request that the WTO set up a panel in the case to rule on the issue raised.

The development comes as the Indian government plans to launch a National Critical Mineral Stockpile (NCMS) programme, which aims to ensure the availability of rare earth elements in the country. These rare earth minerals are essential for the production of electric vehicles, wind turbines and other green energy technology developments.

READ | OpenAI's Sam Altman takes BIG decison, says ChatGPT to soon allow erotica for...

India-China trade partnership

China is the second-largest trading partner of India. In the last fiscal, India's exports to China contracted 14.5 per cent to USD 14.25 billion against USD 16.66 billion in 2023-24, PTI reported. 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.