India's support measures in auto, renewable energy sectors fully compliant with WTO norms: Official
The Hindu
India's auto and renewable energy support measures are WTO-compliant, ready for defense amid China's dispute panel request.
“India's support measures to promote manufacturing in the automobile and renewable energy sectors are fully compliant with World Trade Organisation (WTO) norms, and the country will strongly defend them at the WTO's dispute settlement panel meetings,” an official said.
Following a request by China, the WTO dispute settlement body on Tuesday (February 24, 2026) announced the setting up of a panel to hear the case.
The official said India regrets China's decision to proceed with panel establishment despite extensive bilateral consultation on the matter in good-faith, during which India provided detailed explanations and clarifications on the measures.
"India is of the view that China's request for panel establishment reflects an incorrect understanding of both the design and operation of the measures at issue. India maintains that the measures challenged by China are fully consistent with India's rights and obligations under the WTO Agreements, including the GATT (General Agreement on Trade and Tariffs) 1994 and the Agreement on Subsidies and Countervailing Measures," the official said.
“The country will participate constructively in the panel proceedings and will "vigorously" defend its measures and it is confident that the panel will find the measures to be consistent with WTO rules,” the official added.
In October last year, in a complaint to the WTO Beijing alleged that certain conditions in India's Production Linked Incentive (PLI) schemes for advanced chemistry cell batteries, automobiles and the policy to promote the manufacturing of electric vehicles violate global trade rules by discriminating against Chinese goods and exporters. China is a major exporter of these products.

The U.S. has launched two investigations under Section 301 of the Trade Act of 1974 against India and other economies to examine practices that may be ‘unreasonable or discriminatory and burden or restrict U.S. commerce’. One probe examines whether countries, including India, are using excess manufacturing capacity to export to the U.S. in a manner that hurts American businesses, while another looks at whether countries have taken ‘sufficient steps’ to prohibit imports of goods produced with forced labour.












