India's Stance on Investment Facilitation for Development (IFD) Agreement
India is supportive of initiatives aimed at facilitating investment flows to developing and poor countries. However, India believes that the World Trade Organization (WTO) is not the appropriate forum for investment facilitation matters.
Investment Facilitation for Development (IFD) Agreement
- The IFD agreement, backed by 128 WTO members, seeks to enhance transparency in investment regulations to attract foreign and national investors.
- The goal is to ease the flow of foreign direct investment (FDI) and target higher-quality investments, especially as many developing countries face weak growth and high inflation.
India's Position
- India has not joined the IFD agreement and opposes it, viewing it as a dilution of the WTO's multilateral nature.
- The proposal seeks to be binding only on signatory members through Annexure-4 of the WTO.
- Several countries, along with India, have expressed concerns against the China-led IFD proposal.
- India argues that plurilateral agreements could undermine the balance of interests in WTO negotiations and marginalize key issues like farm subsidies.
Key Concerns and Recommendations
- Public Stockholding: India emphasizes a permanent solution is critical due to the reliance of low-income farmers on the minimum support price (MSP) system.
- Fisheries Subsidies: Advocates for a balanced approach to address sustainability while protecting fisher livelihoods. Distant-water fishing nations should reduce their capacities proportionately.
- E-commerce Moratorium: Stresses the need for policy space to harness developments in the rapidly evolving digital economy, particularly concerning emerging technologies.
India's Engagement at Ministerial Conference 14 (MC14)
- India's engagement will be constructive, balanced, and development-oriented, focusing on meaningful WTO reforms.
- India will stress the importance of respecting the multilateral mandate of the WTO, prioritize food security, and safeguard farmers' and fishers' livelihoods.
- The Indian delegation will be led by Commerce and Industry Minister Piyush Goyal, including senior officials and experts.
