'India's PLI schemes for auto, EV policy violate WTO norms'

China has alleged that certain conditions in India’s Production Linked Incentive schemes for advanced chemistry cell battery, automobiles and the policy to promote the manufacturing of electric vehicles violate global trade rules, and has filed a complaint against these measures at the WTO.

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According to a communication of the Geneva-based WTO, China has sought consultations with India on these measures under WTO’ dispute settlement mechanism.

Beijing has stated that measures adopted by India are contingent upon the use of domestic over imported goods and discriminate against goods of Chinese origin.

‘These measures appear to be inconsistent with India’s obligations under the SCM (Subsidies and Countervailing Measures) Agreement, the GATT (General Agreement on Tariffs and Trade) 1994 and the TRIMs (Trade-Related Investment Measures) Agreement.

“_as a consequence of the foregoing, the measures at issue appear to nullify or impair benefits accruing to China, directly or indirectly, under the cited agreements,’ the WTO's communication dated October 20 has said.

China looks forward to receiving India’s reply and to agreeing on a mutually convenient date for the consultations, it added.

‘This request concerns certain measures maintained by India that affect trade in the automotive and renewable energy technology sectors. Specifically, it relates to certain requirements that condition eligibility for, and the disbursement of, incentives under these programmes, it said.