China Challenges India’s EV Manufacturing Incentives at WTO Over Trade Practices

China has formally challenged India's renewable energy and electric vehicle (EV) incentive programs at the World Trade Organization (WTO), alleging that India's 'Make in India' initiative discriminates against foreign, particularly Chinese, goods by favoring domestic manufacturing. The complaint targets India's Production Linked Incentive (PLI) schemes and EV subsidy programs, which aim to boost local manufacturing and reduce import reliance, sparking a broader debate on whether developing countries can foster green industrialization through such policies without violating WTO rules. India defends these measures as necessary for building domestic capabilities in clean technologies, highlighting that the policies reward local investment without banning imports, mirroring China's own past strategies to nurture its EV industry. The dispute reflects tensions over the WTO principle of 'national treatment,' which mandates equal treatment for foreign and domestic products once they enter a market. If consultations between China and India do not resolve the issue within 60 days, the WTO may establish a dispute panel to adjudicate. Meanwhile, China's challenge comes amid its massive global investments in EV supply chains and battery production, underscoring the strategic importance of green technology manufacturing in global trade dynamics.