China complains WTO against India:Accuses govt of providing unfair advantage to domestic companies by giving heavy subsidies

China has expressed displeasure over the subsidies being given to promote Electric Vehicles (EV) in India. According to Reuters report, China filed a complaint against India at the World Trade Organization (WTO) on Wednesday on this matter. China claims that India’s hefty subsidies are giving unfair advantage to its domestic companies. This is affecting Chinese electric vehicles and EV products sold in India. This is harming China’s interests. China’s Ministry of Commerce has made it clear that it will take strict steps to protect the rights of its industries. India leads in giving EV subsidies According to a report by Economic Times, among major countries of the world, India provides the highest subsidies on electric cars. For example, on India’s best-selling EV Tata Nexon, buyers and manufacturing companies combined are receiving subsidies of up to about 46 percent. Benefits of EVs in India include lower GST, lower road tax compared to petrol-diesel vehicles, and support from the PLI (Production-Linked Incentive) scheme given to companies. India provides highest EV subsidy to companies vis-a-vis major countries Up to 100% subsidy on setting up charging stations The Government of India is focusing not just on vehicles but also on charging infrastructure to promote EVs. Under the ‘PM e-Drive’ scheme, the central government is bearing up to 80 percent of the cost of building public fast-charging stations. In some cases, this subsidy can be given up to 100%. Under this scheme, the money is given in three installments. 30% upon receiving the tender, 40% upon station installation, and the remaining amount is received after commercial operations begin. The subsidy for e-truck, e-ambulance, e-bus charging infrastructure (charging stations) will continue till March 31, 2028. However, the government will discontinue subsidies on electric two-wheelers, e-rickshaws, three-wheelers and e-carts after March 2026. EV progress remains slow despite heavy subsidies Despite giving large subsidies, people in India are still not widely adopting electric vehicles. EVs have only a 2% share in the total vehicle market. This figure is the lowest compared to other countries. This means that while the government is investing a lot of money, EVs have still not fully reached the common man.