India has firmly defended its support measures for the automobile and renewable energy sectors at the World Trade Organisation (WTO), asserting that these policies are fully compliant with global trade norms. This follows China’s successful request for the WTO dispute settlement body to establish a panel to hear the case, announced on February 24, 2026.
An Indian official confirmed that the country will strongly defend its position during the upcoming dispute settlement panel meetings. The measures in question are part of India’s broader strategy to promote domestic manufacturing in these strategic sectors. The official emphasized that all support programs are designed in accordance with WTO rules, and India is confident in its legal position.
The dispute highlights ongoing trade tensions between the two Asian giants at the multilateral forum. China’s move to challenge these measures reflects its scrutiny of trade policies affecting its commercial interests, while India’s robust defense underscores its commitment to protecting policy space for domestic manufacturing initiatives.
India’s automobile and renewable energy sectors have been key beneficiaries of government support aimed at boosting local production and reducing import dependence. These policies align with the country’s broader goals of achieving self-reliance and promoting sustainable energy sources.
The case will now proceed to panel hearings, where both countries will present their arguments before a dispute settlement panel. The outcome could have significant implications for India’s ability to pursue industrial policies in emerging sectors like renewable energy and automotive manufacturing.
WTO members typically have 60 days to resolve disputes through consultation before panel proceedings begin. Given that consultations have failed to resolve the matter, the panel process will now move forward, with both sides preparing their legal submissions.
The development comes amid broader global trade tensions and increasing scrutiny of industrial policies at the WTO. India has consistently maintained that its developmental policies are within its rights as a WTO member and necessary for building domestic manufacturing capabilities. The case represents a crucial test for India’s industrial policy space at the multilateral level.
