Context

• India's influence at the World Trade Organization has grown following a notable decline ofU.5.power within the organization, but its in opportunisın and obstructionism could weaken its potential to benefit fully from the international trading system. 

About the Update

• India is a contradiction in the World Trade Organization (WTO): both a norm-breaker and a deal maker.
• When the WTO was established in 1995, India had already begun a series of economic reforms to help it take advantage of the benefits of global trade and grow into a force to be reckoned with in international institutions.
• However, India has both resisted and embraced multilateralism depending on the balance of its offensive and defensive trade interests.
• As reforms slowed down in the 2000s and the multilateral trade negotiations called the Doha round failed in 2011, India became a force for obstruction, partnering with different groups of countries to lead by disrupting the WTO. 
• Furthermore, the notable decline of U.S. power in the organization and disinterest in the multilateral trading system has left a substantial governance gap and increased India's influence. 

Major concerns raised by India

• Agriculture & Food Security: Insists on a permanent solution for public stockholding programs (like its food security buffer) that exceed current WTO subsidy limits. Views this as critical for feeding its population.
• E-commerce Moratorium: Strongly opposes extending the moratorium on customs duties for electronic transmissions, arguing it erodes developing countries' policy space and potential revenue.
• Development Issues: Resists new rules (like on investment or ecommerce) without resolving old issues like agriculture and Special and Differential Treatment (S&DT) for developing countries.

India as a strategic navigator of WTO

• Engaging Selectively: Participates actively in areas it deems strategically important (e.g., fisheries subsidies).
• Building Coalitions: Forms coalitions with other developing countries (like the G33 on agriculture) to amplify its voice.
• Leveraging Size: Uses its massive market size and strategic importance to extract concessions.
• Finding Alternatives: Pursues policy goals outside the WTO when blocked internally (e.g., imposing digital service taxes after opposing the e-commerce moratorium).

Way Forward

• Permanent Solution on Food Security: Finding a legally binding, permanent solution for public stockholding programs.This requires significant flexibility from major agricultural exporters (like the US, EU, Canada, Australia).
• Meaningful S&DT: India and other developing nations demand that Special and Differential Treatment be practical and effective, not just symbolic. New rules need to genuinely account for different development levels.

WTO Reforms needed

• Realistic Negotiating Agendas: The WTO needs to prioritize achievable outcomes rather than overly ambitious, comprehensive rounds. Focusing on narrower issues where consensus is possible (like the fisheries subsidies success) might be more productive.
• Plurilateral Agreements (with Safeguards): While India historically opposes plurilaterals (smaller groups negotiating new rules), the article suggests it might tolerate them if:
• Reviving Dispute Settlement: Restoring a functional Appellate Body is crucial for the rules-based system India also relies on. India has an interest in this but has blocked appointments alongside the US.
• Balancing the often conflicting demands of farmers, domestic industries, and a growing digital/services sector requires clearer internal trade-offs and a more cohesive national strategy presented at the WTO.

About WTO

• It is an international institution that oversees the rules for global trade among nations.
• WTO has 164 member countries[with Liberia and Afghanistan the most recent members, having joined in 2016] and 25 observer countries and governments.
• It officially began operations on January 1, 1995, in accordance with the 1994 Marrakesh Agreement, thus replacing the 1948 General Agreement on Tariffs and Trade (GATT).