How does India balance its developmental priorities as a developing economy with its commitments under WTO rules? Illustrate with recent trade policy reviews.

Q. How does India balance its developmental priorities as a developing economy with its commitments under WTO rules? Illustrate with recent trade policy reviews. (15 marks, 250-350 words)

The WTO's Trade Policy Review (TPR) is a transparency exercise in which a member's trade regime is periodically examined by the Trade Policy Review Body. India's Eighth TPR, concluded in Geneva on 23 July 2026 and covering 2021–2025, shows that India seeks not exemption from WTO rules but policy space within them — defending developmental flexibilities while deepening multilateral engagement [1][2].

Developmental priorities asserted - Tariff policy as a livelihood shield: agricultural tariffs are justified as protection for small and marginal farmers, and industrial tariffs as support for supply chain resilience and domestic manufacturing [1]. - Special and differential treatment: India argues from its status as a lower-middle-income economy with per capita GDP of about USD 2,671 in FY 2024-25 — a reminder that aggregate size masks low per-capita capacity [3]. - Reforms are framed within the Amrit Kaal (2022–2047) Viksit Bharat vision, making this the first TPR of India conducted during that phase [3].

Commitments honoured - Restraint in trade remedies: India applies the Lesser Duty Rule in anti-dumping investigations and maintains limited remedy measures [1]. - Multilateral give-and-take: acceptance of the WTO Agreement on Fisheries Subsidies signals willingness to accept binding disciplines [1]. - Trade facilitation and transparency: customs modernisation and Digital Public Infrastructure lower transaction costs, aligning national reform with WTO objectives [1].

Points of friction - Members' scrutiny remains substantial — 68 members intervened and 44 submitted 1,094 written questions, many on tariff unpredictability, quality control orders and incentive schemes [1][2]. - Peak tariffs and wide bound–applied gaps invite the charge of protectionism, while MSME integration into global value chains stays weak [1][3].

India's balance is therefore calibrated rather than confrontational: compliance on procedure and disciplines, firmness on developmental flexibilities. Going forward, tariff rationalisation paired with credible non-tariff transparency, sustained FTA diplomacy and MSME competitiveness support would let India convert scrutiny into credibility — advancing both Viksit Bharat 2047 and a rules-based, development-sensitive multilateral order.

(~315 words)

Sources: 1. Trade Policy Review – India 2026, World Trade Organization — TPR as a transparency exercise; review sessions of 21 and 23 July 2026; India's tariff justifications, Lesser Duty Rule, Fisheries Subsidies Agreement, customs and DPI reforms; members' interventions and questions 2. Press Information Bureau, Ministry of Commerce & Industry — India concludes its Eighth Trade Policy Review at the WTO in Geneva, 23 July 2026; participation of 68 members and 1,094 written questions from 44 members 3. WTO Secretariat Report WT/TPR/S/488, 26 May 2026 — India as a lower-middle-income economy with per capita GDP ~USD 2,671 in FY 2024-25; first TPR during Amrit Kaal; MSME and value-chain integration issues