India's 8th WTO Trade Policy Review Highlights Trade Reforms, Digital Leadership and India's Stand on Multilateral Trade Governance

Recent Developments:

• India's 8th Trade Policy Review (TPR) was conducted at the World Trade Organization (WTO) in Geneva on 21 and 23 July 2026, covering the review period from 1 January 2021 to 31 December 2025.
• The Indian delegation was led by Commerce Secretary Rajesh Agarwal, who presented India's trade policy achievements, economic performance and reform agenda before WTO members.
• Around 65 WTO Members participated in the review, raising a large number of questions on India's trade policies, industrial incentives and regulatory framework.
• The review reaffirmed India's commitment to a transparent, rules-based, development-oriented and multilateral trading system while highlighting its concerns regarding emerging plurilateral trade arrangements.

What is the WTO Trade Policy Review Mechanism (TPRM)?:

Meaning:

• The Trade Policy Review Mechanism (TPRM) is the transparency and peer-review mechanism of the World Trade Organization (WTO) under which members periodically examine each other's trade policies and practices.
• The mechanism seeks to improve transparency, predictability, understanding and accountability in the multilateral trading system rather than settling disputes or imposing penalties.

Legal Basis:

• Established during the Uruguay Round in 1988 and incorporated permanently through Annex 3 of the Marrakesh Agreement (1994) establishing the WTO.

Objectives:

• Promote greater transparency in members' trade policies.
• Improve adherence to WTO rules, disciplines and commitments.
• Facilitate the smooth functioning of the multilateral trading system.
• Encourage constructive peer dialogue instead of litigation.

Trade Policy Review Body (TPRB):

• The Trade Policy Review Body (TPRB), comprising the full WTO membership, conducts Trade Policy Reviews.
• Reviews are based on:
• Government Report submitted by the member under review.
• Independent Secretariat Report prepared by the WTO Secretariat.
• Interactive discussions and questions from WTO members.

Frequency of Reviews:

• Review frequency depends upon a member's share in global trade.
• Since the 2019 amendment:
• Largest trading members — every 3 years.
• Next major traders — every 5 years.
• Other members — every 7 years.
• Least Developed Countries (LDCs) may receive a longer review cycle.

India's Economic and Trade Performance:

Economic Growth:

• India maintained nearly 8% average annual GDP growth during 2021–2025 despite geopolitical conflicts, supply-chain disruptions and global protectionism.

Export Performance:

• India recorded USD 863.1 billion in exports during 2025–26, marking the country's highest export performance.

Development Vision:

• India reiterated its commitment to Viksit Bharat @2047 while simultaneously addressing the developmental aspirations of nearly one-fifth of the global population.

Major Trade and Economic Reforms Highlighted by India:

Industrial and Manufacturing Reforms:

• Aatmanirbhar Bharat promotes domestic manufacturing while integrating India with Global Value Chains (GVCs).
• Regulatory reforms under the Jan Vishwas Initiative have simplified compliance requirements and improved the ease of doing business.

Trade Facilitation and Logistics:

• Digital customs systems have improved border clearance efficiency.
• Logistics modernisation and quality infrastructure have strengthened trade competitiveness.

Digital Economy Reforms:

• Expansion of Digital Public Infrastructure (DPI) has enhanced financial inclusion and trade efficiency.
• India promoted Artificial Intelligence (AI), innovation ecosystems and startup development as future growth drivers.

Sustainable Development Measures:

• Greater emphasis has been placed on sustainability, climate resilience, agricultural resilience and inclusive development.

Global Trade Engagement:

• Expansion of Regional Trade Agreements (RTAs) has diversified India's trade partnerships.
• India continued extending development assistance through South-South Cooperation and the Indian Technical and Economic Cooperation (ITEC) Programme.

Recognition Received During the Review:

Observations by the WTO Trade Policy Review Body (TPRB):

• Recognised India among the fastest-growing major economies.
• Appreciated India's leadership in digitally delivered services exports.
• Commended reforms relating to Digital Public Infrastructure, financial inclusion and trade facilitation.
• Welcomed India's acceptance of the WTO Agreement on Fisheries Subsidies after depositing its Instrument of Acceptance.
• Appreciated India's timely responses to advance questions, demonstrating transparency under the TPR mechanism.

Observations by Brazil:

• Appreciated the success of the Goods and Services Tax (GST) in creating a unified domestic market.
• Highlighted India's digital trade reforms and export diversification.
• Recognised the importance of India's expanding Regional Trade Agreements (RTAs).
• Appreciated the Duty-Free Tariff Preference (DFTP) Scheme for Least Developed Countries (LDCs).
• Considered India's Digital Public Infrastructure (DPI) a potential development model for other developing countries.

Major Issues Raised by WTO Members:

Concerns Expressed:

• Several members questioned Production Linked Incentive (PLI) Schemes, Quality Control Orders (QCOs), tariff revisions, agricultural trade restrictions and regulatory predictability.
• Questions were also raised regarding industrial tariffs, import substitution policies and the Minimum Support Price (MSP) framework.

India's Response:

• India maintained that these measures pursue legitimate public policy objectives, strengthen manufacturing competitiveness, improve product quality and remain consistent with WTO obligations.

India's Objections to the Agreement on Electronic Commerce (ECA):

Background:

• India and several WTO members differ over the proposed 66-member Agreement on Electronic Commerce (ECA).

India's Position:

• India argues that any new Annex 4 Plurilateral Agreement requires consensus of all WTO members under the Marrakesh Agreement.
• India opposes operationalising agreements that have not received multilateral approval.

Annex 4 Agreements:

• Agreements under Annex 4 bind only those members that voluntarily accept them.
• Presently, the two active Annex 4 agreements are:
• Agreement on Trade in Civil Aircraft.
• Revised Agreement on Government Procurement.

Interim Arrangement:

• After consensus could not be achieved, 66 participating members adopted an interim declaration to operationalise the e-commerce agreement among themselves.

Institutional Concerns:

• India questioned the legal and institutional basis for introducing a plurilateral agreement without full WTO consensus.
• India argued that such arrangements weaken the multilateral character of the WTO.

Supporters' View:

• Proponents argue that Joint Statement Initiatives (JSIs) allow progress on emerging issues where unanimous agreement is difficult.

Significance of the Trade Policy Review for India:

Global Image:

• Reinforces India's reputation as a responsible stakeholder in the multilateral trading system.

Trade Strategy:

• Demonstrates India's effort to balance Aatmanirbhar Bharat with greater global economic integration.

Digital Leadership:

• Highlights India's expanding role in digital trade, services exports and Digital Public Infrastructure.

Global South Leadership:

• Strengthens India's role in South-South Cooperation and development partnerships.

Negotiating Credibility:

• Enhances India's credibility in ongoing WTO negotiations and institutional reform discussions.

Soft Power:

• India organised an exhibition showcasing diverse Indian products and traditional papier-mâché handicrafts, strengthening cultural diplomacy.

UPSC Mains Perspective:

Challenges Before the WTO:

• Weak dispute settlement mechanism after the Appellate Body became dysfunctional.
• Growing unilateral trade restrictions and protectionism.
• Increasing preference for plurilateral agreements over multilateral consensus.
• Expanding digital economy requiring new global trade rules.
• Balancing development concerns of developing countries with demands for greater market liberalisation.

India's Way Forward:

• Continue supporting a rules-based, transparent and inclusive multilateral trading system.
• Advocate Special and Differential Treatment (S&DT) for developing countries.
• Expand export competitiveness through logistics reforms, manufacturing and digital trade.
• Pursue balanced WTO reforms while protecting food security, policy space and developmental priorities.
• Strengthen participation in global value chains without compromising strategic economic interests.

Value Addition for UPSC:

Important WTO Bodies:

• Ministerial Conference – Highest decision-making body.
• General Council – Supervises day-to-day functioning.
• Trade Policy Review Body (TPRB) – Conducts Trade Policy Reviews.
• Dispute Settlement Body (DSB) – Administers dispute settlement.

Important WTO Agreements for Examination:

• General Agreement on Tariffs and Trade (GATT) 1994
• General Agreement on Trade in Services (GATS)
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
• Agreement on Agriculture (AoA)
• Agreement on Fisheries Subsidies
• Trade Facilitation Agreement (TFA)
• Agreement on Sanitary and Phytosanitary Measures (SPS)
• Technical Barriers to Trade (TBT) Agreement

Prelims Facts:

• Trade Policy Review Mechanism (TPRM) is contained in Annex 3 of the Marrakesh Agreement.
• Trade Policy Review Body (TPRB) is the WTO body responsible for conducting Trade Policy Reviews.
• Trade Policy Reviews are transparency exercises and do not adjudicate disputes or impose penalties.
• Annex 4 Agreements bind only members that voluntarily accept them.
• India's 8th Trade Policy Review covered the period 1 January 2021–31 December 2025 and was held on 21 and 23 July 2026 in Geneva