China alleges that India's Production Linked Incentive (PLI) scheme for EVs and batteries violates global trade rules.
Highlights
China alleges that these subsidy schemes are against its products.
In this complaint, information about three schemes of the Central Government has been given.
Recently, America's Tesla has started selling its EV in the country.
Electric vehicle (EV) sales have grown rapidly in the country over the past few years. Subsidies provided by the central and state governments are a major reason for this. However, China has expressed displeasure over these subsidies and has filed a complaint with the World Trade Organization (WTO).
A PTI report states that China alleges that India's Production Linked Incentive (PLI) scheme for EVs and batteries violates global trade rules. China says that such schemes in India promote the use of domestically manufactured goods instead of imports and discriminate against Chinese products. In its complaint, China cited three central government schemes.
These schemes include the National Program on Advanced Chemistry Cell Battery Storage, which has been allocated ₹18,100 crore (₹18,100 crore). Furthermore, there is a ₹25,938 crore (₹25,938 crore) PLI scheme for automobiles and auto components, and a scheme to promote the manufacturing of electric passenger cars. China argues that these schemes aim to increase local sourcing, reduce imports, and decrease the presence of foreign, especially Chinese, products. According to WTO procedures, a request for consultation is the first step in resolving a dispute. Both India and China are WTO members, and any member can file a complaint if they believe that another member's policies are harming their exports.
Emission norms are being tightened in India, the world's third largest automobile market. The central government plans to increase the share of EVs in total car sales to about 30 percent by 2030. Tata Motors has a major share in the electric passenger vehicle market. Recently, billionaire Elon Musk 's Tesla has started its business in the country. However, the high prices of Tesla's Model Y are affecting its sales. China's BYD is also present in this market.
