India stands firm against inclusion of investment pact in WTO framework
India’s argument is that investment was a non-trade issue and fell outside the ambit of the WTO
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India will continue to put up a strong fight at the WTO against the proposed inclusion of an investment agreement — endorsed by 128 countries till now — into the main framework at the upcoming fourteenth WTO Ministerial Conference (MC14) in Cameroon in March 2026.
While South Africa has shifted its stance opposing the Investment Facilitation for Development (IFD) Agreement, India maintains its refusal to endorse the pact citing that it was a “non-mandated” initiative pushed as a plurilateral agreement without full consensus.
India’s argument is that investment was a non-trade issue and fell outside the ambit of the WTO. Such an agreement threatens the policy space needed by developing countries for regulating FDI and diverts focus from core WTO development issues like agriculture.
At a recent meeting of the WTO General Council to discuss possible deliverables for WTO MC 14, India continued to oppose the IFD Agreement, sources said.
“The General Council was unable to reach consensus on the request supported by 128 co-sponsors to incorporate the IFD Agreement into the WTO’s legal architecture as a plurilateral agreement… This marked the 11th time the proposal had been submitted to members for adoption,” per a note circulated by the WTO.
One delegation reiterated its objection to incorporating the IFD Agreement into the WTO multilateral framework, the note stated without naming India. “Another delegation said it had received new instructions from their government and that it would no longer stand in the way of consensus on incorporation, while a third delegation, despite having reservations, expressed willingness to continue dialogue,” the note added.
The delegation that said that it would no longer stand in the way of consensus on incorporation was South Africa while the one that said that it was willing to continue dialogue on the matter was Turkey, an expert tracking the development pointed out.
“India’s stance on the IFD is much needed in the current context of the WTO where we are seeing a massive push for illegally incorporating the JSIs (Joint Sector Initiatives) by disregarding the Marrakesh Agreement rules. This push is evident even in the WTO reform agenda. If the IF goes through in this manner it will have serious implications for future JSIs, such as the one on e-commerce. India is now only one of two countries standing up for rules and for actual development,” said Ranja Sengupta, a senior researcher with the Third World Network.
WTO JSIs are plurilateral talks among groups of willing WTO members to push for new rules on key issues like e-commerce, investment facilitation, services domestic regulation, and MSMEs, bypassing the traditional consensus rule.
India has been opposing integration of the IFD in the WTO framework also because it would then set a precedent and other non-trade issues that are not part of the WTO’s mandate would also try to gain legitimacy while the legitimate issues, such as support for developing country farmers and MSP schemes, may be pushed to the background.
Published on December 30, 2025
