India blocks China’s WTO request for dispute panel on auto, EV incentive schemes

New Delhi: India on Tuesday blocked a request by China at the World Trade Organization (WTO) to set up a dispute panel against New Delhi's incentive schemes for auto, battery, and electric vehicles. Both sides had earlier failed to resolve the dispute through bilateral consultations.

Beijing said the incentive measures are trade-restrictive and discriminatory and violate India's obligations under WTO agreements.

The two held consultations on November 25, 2025, and January 6, 2026, but didn't reach a resolution, China said, prompting its request for the panel last week.


India said it engaged with China in good faith during the consultations with a view to reaching a mutually satisfactory resolution and that there appeared to be an inaccurate understanding of the facts.

Consultation is the first step of the dispute settlement process as per WTO rules and a lack of satisfactory solution can lead to the trade body setting up a panel in the case to rule on the issue.

"In light of this, India said it is not in a position to accept China's request for the establishment of a panel," said an official.

The issue was taken up at a meeting of the WTO's dispute settlement body.

China can renew its request at the next meeting of the body.