India vs China at WTO | Trade War Over PLI Scheme | Geopolitics Simplified | UPSC

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India vs China at WTO | Trade War Over PLI Scheme | Battle for EV Dominance

In October 2025, China escalated trade tensions by filing a formal complaint with the World Trade Organization (WTO) against India. The issue centers on India's subsidies for electric vehicles (EVs) and batteries, which China alleges violate WTO rules by providing Indian industries with an unfair competitive advantage. This move underscores the intensifying rivalry between the two nations in the burgeoning green technology sector.

India's Production-Linked Incentive (PLI) scheme, introduced in 2020, aimed to bolster domestic manufacturing and reduce reliance on imports. However, the program faced challenges, including bureaucratic delays and underperformance in key sectors like steel and solar panels. Despite these setbacks, India has made significant strides in pharmaceuticals and mobile phone production, attracting global companies such as Foxconn and Reliance Industries.

This video delves into the complexities of the India-China trade war over the PLI scheme and the battle for EV dominance, examining the geopolitical and economic implications for both nations.

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