DISPUTE SETTLEMENT

DS: India - Measures Concerning Trade in the Automotive and Renewable Energy Technology Sectors

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

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Consultations

Complaint by China

On 15 October 2025, China requested consultations with India with respect to certain measures adopted by India related to trade in the automotive and renewable energy technology sectors that allegedly are contingent upon the use of domestic over imported goods or otherwise discriminate against goods of Chinese origin. These comprise: (a) the Production Linked Incentive, National Programme on Advanced Chemistry Cell (ACC) Battery Storage (PLI ACC Scheme); (b) the Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI Auto Scheme); and (c) the Scheme to Promote Manufacturing of Electric Passenger Cars in India (EV Passenger Cars Scheme).

China claimed that the challenged measures appear to be inconsistent with:

  • Articles 3.1(b) and 3.2 of the SCM Agreement;
  • Article III:4 of the GATT 1994; and
  • Article 2.1 of the TRIMS Agreement.

China also claimed that the EV Passenger Cars Scheme appears to be inconsistent with Article I:1 of the GATT 1994.

China submitted, together with its consultations request, a statement of available evidence pursuant to Article 4.2 of the SCM Agreement.

Panel and Appellate Body proceedings

On 15 January 2026, China requested the establishment of a panel. At its meeting on 27 January 2026, the DSB deferred the establishment of the panel.

At its meeting on 24 February 2026, the DSB established a panel. Australia, Canada, Colombia, the European Union, Indonesia, Japan, Korea, Norway, the Russian Federation, Saudi Arabia, Kingdom of, Singapore, Thailand, Türkiye, the United Kingdom, and the United States reserved their third-party rights.

Following the agreement of the parties, the panel was composed on 28 May 2026.

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