UPSC Mains
GS Paper 2/3 — IR & Economy
WTO Trade Policy Review
India’s WTO Trade Policy Review
Why in News: India’s 8th WTO Trade Policy Review commenced in Geneva even as India remains at loggerheads with 66 nations over a plurilateral e-commerce pact
GDP Growth 2021-2025
~8% Annual Average
Record Exports 2025-26
USD 863.1 Billion
E-Commerce Dispute
66-Nation Pact vs India’s Objection
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India’s WTO TPR: Context and Background
India’s 8th Trade Policy Review (TPR) commenced at the WTO in Geneva on July 21, 2026. Around 65 WTO Members participated in reviewing India’s trade policies and practices, covering the period January 1, 2021 to December 31, 2025.
- The Trade Policy Review Mechanism (TPRM) is a transparency exercise — it assesses but does not enforce compliance.
- The objective is to improve transparency, predictability and accountability in the multilateral trading system.
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India’s Trade and Economic Performance
~8% Average
Annual GDP growth during 2021-2025 despite global headwinds
USD 863.1 Bn
Record exports achieved in 2025-26
- India continued pursuing Viksit Bharat @2047 while addressing the developmental needs of nearly one-fifth of humanity.
- WTO recognised India as one of the fastest-growing major economies globally, and commended its leadership in digitally delivered services exports and DPI reforms.
- India’s Duty-Free Tariff Preference (DFTP) Scheme for LDCs was praised by Brazil’s representative, and India’s acceptance of the WTO Agreement on Fisheries Subsidies was welcomed by the review body.
Key Reforms Highlighted
Aatmanirbhar Bharat
Strengthening domestic manufacturing while integrating with Global Value Chains.
Jan Vishwas Initiative
Regulatory simplification and ease of doing business reforms.
DPI Expansion
Digital Public Infrastructure for financial inclusion and trade efficiency, seen as a model for developing countries.
Logistics Modernisation
Quality infrastructure development and digital customs facilitation.
South-South Cooperation
Continued support through the ITEC Programme and development partnerships.
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Challenges: E-Commerce Agreement and Multilateral Divide
India and key WTO members are at loggerheads over the 66-nation Agreement on Electronic Commerce (ECA). India challenges the legality of bypassing multilateral consensus in adding the pact to WTO’s Annex 4, maintaining that any new plurilateral pact requires agreement of all WTO members under the Marrakesh Agreement.
How the Dispute Unfolded
2025
ECA Fails at General Council
The Agreement on Electronic Commerce failed to pass during General Council meetings in 2025 due to India’s opposition.
Post-Deadlock
66 Nations Issue Interim Declaration
Following the deadlock, the 66 participating countries issued a declaration establishing an interim arrangement to operationalise the e-commerce pact outside full WTO consensus.
India’s Response
Formal Legal Objection
India formally questioned the institutional and legal basis of this partial-membership deal, arguing it undermines WTO’s core multilateral character.
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Proponent nations argue Joint Statement Initiatives are necessary to prevent paralysis on new-age trade rules. India contends that allowing subsets of countries to operationalise unapproved agreements undermines the core multilateral character of the WTO.
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Way Forward: India’s Strategic Trade Positioning
WTO Reform Advocacy
India must continue pushing for balanced, development-oriented WTO reforms safeguarding developing country interests.
E-Commerce Framework
Engage constructively with the ECA debate to shape digital trade rules that preserve India’s data sovereignty and policy space.
DPI Diplomacy
Project India’s DPI model as a global public good for developing countries through South-South cooperation.
RTA Expansion
Strategically expand Regional Trade Agreements while ensuring consistency with WTO multilateral commitments.
Fisheries Subsidies Leadership
Build on the Fisheries Subsidies Agreement acceptance to strengthen India’s credibility as a responsible WTO stakeholder.
Plurilateral Balance
India must articulate a principled alternative to plurilateral fragmentation that keeps the WTO’s multilateral character intact.
