WTO Secretariat
and EU Hit India Trade Policies in TPRM but Conclude with "Satisfactory"
Grade
The WTO Secretariat's report
(WT/TPR/S/488, prepared for India's 8th Trade Policy Review on 21-23 July 2026)
is largely factual and balanced. It highlights India's strong economic
performance, reforms (e.g., digitalization, trade facilitation, FDI
liberalization, and manufacturing initiatives like PLI schemes), and growth
ambitions under Viksit Bharat / self-reliance (Aatmanirbhar Bharat).
It does not contain sharp
"criticisms" in a polemical sense (as these are peer reviews with
member statements raising concerns), but it objectively flags trade-restrictive
elements, structural challenges, and areas where policies may limit deeper
global integration or raise WTO compliance/transparency issues.
Key
points from the Summary and relevant sections include:
High
Tariffs and Import Barriers
India's average applied MFN tariff
remains relatively high (around 15.7-15.8% overall in FY2025/26, with
agricultural tariffs at ~38.6%). While some simplification occurred (e.g.,
removing the highest rates in the 2025-26 Budget), tariffs, additional levies
(AIDC, SWS, Health Cess), Minimum Import Prices (MIPs), licensing, quotas (TRQs),
and prohibitions/restrictions continue to protect domestic sectors.
Frequent adjustments to duties and use
of non-tariff measures (e.g., state trading, import licensing on ~4.8% of
lines) for market stabilization.
Export
Restrictions and Self-Reliance Measures
Export prohibitions/restrictions (e.g.,
on wheat, sugar, certain rice varieties, onions) and Minimum Export Prices
(MEPs) are used to ensure domestic supply/price stability, especially in
agriculture.
Emphasis on self-reliance has led to
targeted manufacturing support and potential insulation from global markets.
Subsidies
and Agriculture
Significant domestic support in
agriculture (e.g., Minimum Support Prices for 22 crops, input subsidies like
fertilizers ~USD 43 billion in 2023, market price support for rice exceeding de
minimis limits). Large-scale food security schemes (free grains for 800+
million people).
Notifications to WTO on
subsidies/domestic support remain outstanding in some areas.
Standards,
SPS/TBT, and Regulatory Complexity
Expansion of Quality Control Orders
(QCOs) and conformity assessments (often deviating from international
standards) is noted as increasing compliance burdens (echoed strongly in member
statements like the EU's).
Cumbersome SPS requirements and
technical barriers are referenced in the context of trade costs and
facilitation efforts.
Other
Areas
Government procurement preferences
(e.g., for MSEs) and limited participation in agreements like GPA.
Intellectual property enforcement gaps
and ongoing issues (though reforms noted).
State-owned enterprises (CPSEs) remain
prominent.
Structural challenges: high trade costs,
regulatory complexity, infrastructure gaps, modest GVC integration (below ASEAN
levels), and reliance on trade-restrictive measures. The report suggests that
reducing these could boost efficiency, competitiveness, FDI, and export
diversification.
Overall Tone and Conclusion: The
Secretariat praises progress in trade facilitation (e.g., digital customs, AEO,
National Trade Facilitation Action Plan), services/digital economy growth, and
reforms, while noting that balancing self-reliance with greater openness will
be key for India's long-term goals (e.g., raising global export share). It
highlights outstanding WTO notifications and policy space for development.
Member statements (e.g., EU) were more
pointed on predictability, QCOs, SPS/IP/GI, and procurement access. The full
report (244 pages) and Summary are available on the WTO site. The review
concluded positively, with India reaffirming WTO commitment.
[ABS News Service/24.07.2026]