India Stands Firm Against China-Backed Investment Proposal at WTO

India plans to oppose China's Investment Facilitation for Development proposal at the World Trade Organisation. Back by 128 countries, the proposal faces India's resistance citing the need for resolution of existing issues over new agreements. India also emphasizes fair agricultural and fisheries subsidies.

At the World Trade Organisation (WTO), India has announced its intention to oppose the Investment Facilitation for Development (IFD) proposal, a plan spearheaded by China. Informed sources within the Commerce Ministry communicated this decision on Tuesday. Currently, the IFD, which has garnered support from 128 out of 166 member countries, is not backed by the United States, while four nations stand in solidarity with India. Notably, the proposal would only bind signatory members, further stoking debates.

India's opposition is rooted in concerns that such plurilateral agreements might undermine the WTO's multilateral framework. Officials insist on settling longstanding mandated issues before discussing new matters. Specifically, India seeks a permanent solution for public stockholding of grains, reflecting an unwavering commitment to food security and farmer livelihoods, core tenets of its stance at the WTO meetings.

Additionally, India has raised issues regarding disparities in agricultural subsidies. A clear contrast exists between India's USD 465 subsidy per farmer and America's USD 81,000. The nation further advocates for fairer fishing subsidy criteria within the WTO framework. Recent proposals submitted by India stress the need for a permanent carve-out for countries with lower per capita fishery subsidies, emphasizing equitable disciplines based on subsidy intensity rather than total value.

(With inputs from agencies.)