Overview
- An official WTO notice dated October 20 records China’s complaint alleging India’s incentive schemes tie benefits to domestic inputs in breach of the SCM, TRIMs and GATT agreements.
- Beijing’s filing targets three measures: the National ACC Battery Storage programme, the PLI Scheme for Automobile and Auto Components, and the 2024 scheme to promote manufacturing of electric passenger cars.
- China argues the programmes’ domestic value-add requirements disadvantage imported goods, including Chinese products, by conditioning eligibility and payout levels on local content.
- India’s Commerce Ministry, led by Commerce Secretary Rajesh Agrawal, said it will examine the submission and proceed to schedule consultations.
- If consultations do not resolve the dispute, China may request a panel, though final enforcement is uncertain with the WTO Appellate Body currently non-functional.