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 words)

India, a lower-middle-income economy with per-capita GDP around USD 2,671 [2], must reconcile the needs of small farmers, MSMEs and nascent manufacturing with the transparency and non-discrimination disciplines of the WTO. Its Eighth Trade Policy Review (TPR), concluded on 23 July 2026 in Geneva, illustrates this calibrated balance [1].

Protecting developmental space - Agricultural tariffs defended as a shield for small and marginal farmers' livelihoods and food security [1]. - Industrial tariffs framed as tools for supply-chain resilience and domestic manufacturing, aligning with Viksit Bharat @2047 [1]. - India stressed its right to policy space as a large developing economy while remaining WTO-consistent [1].

Honouring multilateral commitments - Accepted the WTO Agreement on Fisheries Subsidies, signalling constructive multilateral engagement [1]. - Applies the Lesser Duty Rule in anti-dumping cases, keeping trade remedies restrained and rules-based [1]. - Modernised customs and trade facilitation, leveraging Digital Public Infrastructure (DPI) for transparency [1].

Global recognition - 68 WTO Members intervened and 1,094 written questions were submitted, reflecting strong interest in India's transformation [1]. - The Secretariat report (WT/TPR/S/488) marked India's first review during the Amrit Kaal [2].

India's approach shows that developmental priorities and rules-based trade need not conflict; calibrated tariffs paired with proactive facilitation reforms and selective multilateral commitments can coexist. Deepening DPI-led facilitation and FTA integration, while safeguarding vulnerable sectors, offers a forward-looking template for balancing equity with an open, inclusive multilateral trading system.

(~250 words)

Sources: 1. India Concludes Eighth Trade Policy Review at WTO in Geneva — PIB (2026) — TPR conclusion, 68 members/1,094 questions, tariffs defence, Fisheries Subsidies, Lesser Duty Rule, DPI/customs reforms 2. WT/TPR/S/488, Trade Policy Review: India — WTO Secretariat Report (26 May 2026) — per-capita GDP ~USD 2,671, first TPR in Amrit Kaal, report code