TWN Info Service on WTO and Trade Issues (Jul26/21)
28 July 2026
Third World Network

Trade: WTO review underscores India's systemic role amid policy concerns
Published in SUNS #10490 dated 27 July 2026

Geneva, 24 Jul (D. Ravi Kanth) -- Many members of the World Trade Organization on 23 July expressed sharp concerns over the conduct of Indian trade policy on issues such as "predictability and transparency," "abrupt tariff changes," "unexpected export restrictions," "complex licensing requirements," and "lengthy investment approvals," as well as "lack of regulatory certainty", during India's eighth Trade Policy Review.

At the end of India's Trade Policy Review (TPR) that concluded at the WTO's Trade Policy Review Body on 23 July, the chair, Ambassador Ms. Nella Pepe Tavita-Levy of Samoa, noted that "foremost among Members' concerns, both expressed in prior questions and made in statements in the last two days, were predictability and transparency."

The chair said, "Members raised points about abrupt tariff changes, unexpected export restrictions, complex licensing requirements, lengthy investment approvals and a lack of regulatory certainty, more generally."

According to the chair, "Many Members requested greater outreach by the authorities to trading partners and the private sector on proposed measures before they enter into force," while "India's WTO notification record was highlighted as an area where further progress could be made."

Notwithstanding the above concerns raised by several industrialized countries, some of whom concluded free trade agreements with India in the recent past, the chair seemingly praised India's overall conduct of its trade policy, noting the high level of participation.

India was subjected to over 1,090 written questions from 44 members, and had answered 700 questions ahead of the meeting. Around 68 members raised several oral questions during the first day of the meeting, the chair noted.

Notwithstanding the worst economic and social crises, with falling gross domestic product and an enveloping monetary crisis, with India's currency, the rupee, dropping precipitously against the US dollar recently, many advanced countries apparently demanded more market access from the Indian government.

"Members encouraged India in its efforts to achieve the "Viksit Bharat" vision of a Developed India by 2047 and recognized the extraordinary scale of this undertaking," the chair said.

Apparently, several members concurred with the assessment provided by the discussant for India's TPR, Ambassador Guilherme de Aguiar Patriota of Brazil, that "by virtue of India's size, growth and influence, this national project has systemic significance."

The discussant is understood to have said that "India's domestic choices increasingly affect global production, services trade, agricultural markets and the future balance of the multilateral trading system."

It appears that members urged "India to continue its wide-ranging reform agenda and sought further information on the implementation, transparency, and effectiveness of a broad range of trade-related measures."

Welcoming "India's deposit of its instrument of acceptance of the WTO Agreement on Fisheries Subsidies," Members apparently "looked forward to India's constructive engagement in the ongoing negotiations."

JSIs

Regarding the Joint Statement Initiatives (JSIs), with India having blocked the incorporation of the controversial Investment Facilitation for Development Agreement (IFDA) into Annex 4 of the WTO Agreement on seemingly procedural and systemic grounds at the WTO's 14th ministerial conference (MC14) in Yaounde, Cameroon, early this year, "various members suggested that India reconsider its position on joining existing plurilateral agreements."

According to the chair's report, "various developed and developing Members encourage(d) India to consider participating in other nascent plurilateral arrangements [notably IFDA and the Agreement on Electronic Commerce (ECA)]."

At the meeting, the chair said, "a large number of Members also encouraged India to lift its objections to the incorporation of new plurilateral arrangements into WTO legal texts through Annex 4, in particular as regards the Investment Facilitation for Development Agreement."

The chair mentioned that "various Members also encouraged India to re-evaluate its participation in joint initiatives, including the Joint Statement Initiatives on MSMEs and E-Commerce, as well as ongoing discussions under the Trade and Environmental Sustainability Structured Discussions, including those on plastics pollution and fossil fuel subsidies."

The chair said that "some Members also pointed to some concerns in respect of India's compliance with its obligations under the Information Technology Agreement [ITA]."

India has lost trade disputes at the WTO for allegedly failing to implement the ITA.

"Another prominent area that attracted numerous questions and statements," according to the chair, concerned "standards, technical regulations, and Quality Control Orders."

On consumer protection, the chair noted that members recognized "India's progress in strengthening quality infrastructure and consumer protection," but "sought further clarifications on consultation procedures, reasons for delays in conducting factory visits, clear implementation timelines, alignment with international standards, simplified conformity assessment requirements, and more recognition of foreign laboratories and certification bodies."

On agriculture, according to the chair, "Members focused their comments on India's minimum support prices, input subsidies, public stockholding programmes, tariff and tariff rate quota administration, import licensing, and export restrictions on products such as wheat, rice, sugar and onions."

In fact, a cursory glance at the questions suggests that many of them were about India's agricultural policies.

"Questions were directed at the transparency, predictability, WTO consistency and notification of these measures, as well as their potential trade-distorting effects," said the chair.

Members raised concerns about "sanitary and phytosanitary (SPS) measures, including relating to the availability of underlying risk assessments and related methodologies, food safety standards, pesticide maximum residue limits, and procedures for judging equivalence for SPS measures."

Recently, several countries like Japan banned imports of Indian mangoes on account of pesticide residue limits.

DIGITAL TRADE

According to the chair, "Members welcomed India's rapid progress in digital economy and trade," mentioning "the swift rollout of its digital public infrastructure, including Aadhaar digital identities, Unified Payments Interface, India Stack, Open Network for Digital Commerce, the Government e-Marketplace, BharatNet, and other digital platforms."

Members apparently sought further information on how these digital initiatives "contribute to e-commerce development, financial inclusion, digital payments, trade facilitation, public procurement, MSME participation in domestic and international markets, and consumer confidence."

It appears that several questions "focused on interoperability, governance arrangements, and the extent to which platforms enable participation by external actors in regional and global value chains."

With the alleged use of Israel's Pegasus surveillance software, India is one of the countries where data protection has almost been violated, according to several studies.

"India's digital regulatory framework also drew interest with questions concerning data governance, cross-border data flows, digital regulation and emerging technologies," the chair pointed out.

In this context, members also "sought clarification on the implementation of the Digital Personal Data Protection Act, the treatment of cross-border data transfers, the scope of data localization requirements, sector-specific regulatory measures, and the implications of these policies for businesses, investors and service suppliers."

While noting "India's principles-based and innovation-oriented approach to Artificial Intelligence, supported by voluntary guidance," the chair said that many members requested information "on emerging governance arrangements, regulatory principles, innovation policies and the treatment of AI-related intellectual property and data."

Members underscored "the importance of maintaining transparent, predictable and innovation-friendly regulatory frameworks that facilitate digital trade and investment."

On production-linked incentives, at a time when major industrialized countries are providing a large menu of incentives through their industrial policies, members noted "India's active industrial policies, including Production-Linked Incentive (PLI) schemes, Make in India initiatives, semiconductor and electronics manufacturing support, renewable energy and solar manufacturing incentives, critical minerals policies, and other measures aimed at strengthening domestic manufacturing and supply-chain resilience."

Further, they asked India to clarify "the objectives, eligibility criteria and operation of these programmes, their consistency with WTO subsidy disciplines, the role of local content requirements, and their effects on investment, trade and participation in global value chains."

The meeting also witnessed a plethora of questions "regarding tariff rationalization, import substitution objectives, public procurement preferences, and support measures for strategic sectors."

Some Members apparently pointed to India's frequent recourse to trade remedies.

On foreign direct investment (FDI), India appears to be facing an FDI drought due to the current economic conditions and abrupt policy measures.

Yet, "members took note of the liberalization of foreign direct investment across most sectors and the operation of the National Single Window System. They requested information on foreign direct investment (FDI) policies, investment screening procedures, and approval requirements for investors from land-bordering countries."

Issues raised also included the operation of import licensing systems, electronic processing of authorizations (so-called "faceless" customs processing), transparency and predictability of border procedures, and plans for further modernization.

Some Members also expressed concerns regarding India's administration of customs valuation and import licensing measures, and their consistency with related WTO Agreements.

On patent filings, according to the chair, "Members welcomed the significant increases recorded in patent filings, expanded use of digital filing and processing systems, expedited examination procedures, the establishment of specialized IP benches and strengthened border and judicial enforcement mechanisms."

Interestingly, "some Members sought clarifications on patent examination procedures, expedited examination mechanisms, protection of trade secrets, copyright enforcement, border enforcement measures, the impact of recent legislative reforms such as the Jan Vishwas Act and the functioning of specialized Intellectual Property Divisions in the High Courts."

Across all these areas, the chair said, "Members consistently emphasized the need for transparency, predictability, stakeholder consultation, timely notifications, and continued dialogue as essential elements for maintaining an open, rules-based, and inclusive trading environment."

"On a lighter note," the chair said, "members encouraged India's vibrant film industry to use their territories as a backdrop for its productions!"

At a time when India appears to be embracing free trade agreements, with the latest sweeping bilateral free trade agreement to be concluded with the United States soon, it appears as though India is giving short shrift to multilateral trade policies in general, and the WTO in particular, said a former Indian trade envoy, who asked not to be identified.

There is also growing concern that while India appears to be increasingly offering sweeping market access to major industrialized countries, the returns from the free trade agreements seem few and far between, the former trade envoy said.

Also, at a time when India seems to be facing headwinds and worsening economic conditions due to a host of factors, the government's full embrace of neo-liberal policies could further exacerbate growing disparities and the shrinking of the size of the middle class on a rapid scale, the trade envoy added. +