Daijiworld Media Network - New Delhi

New Delhi, Oct 16: In a fresh trade development, China has lodged a formal complaint against India at the World Trade Organization (WTO), alleging that New Delhi’s subsidies for electric vehicles (EVs) and batteries violate global trade norms.

Confirming the move, Commerce Secretary Rajesh Agrawal said that the Ministry of Commerce will carefully examine the detailed submissions made by China. “They have sought consultations with India,” an official source revealed, adding that China has also filed similar applications against Turkiye, Canada, and the European Union.

As per WTO procedures, seeking consultations is the initial step in the dispute settlement process. If the discussions between both sides fail to yield a satisfactory resolution, China can request the WTO to set up a dispute panel to adjudicate on the matter.

The development comes amid already strained trade relations between the two Asian giants. Despite being India’s second-largest trading partner, the trade balance remains heavily skewed in China’s favour.

During the financial year 2024-25, India’s exports to China fell by 14.5 percent to USD 14.25 billion, compared to USD 16.66 billion in 2023-24. In contrast, imports from China surged by 11.52 percent to USD 113.45 billion, up from USD 101.73 billion the previous year — widening India’s trade deficit with China to USD 99.2 billion.

Officials stated that India will respond in accordance with WTO procedures while maintaining its commitment to promoting domestic EV manufacturing under fair and transparent trade practices.