Discuss aims and functions of World Trade Organisation and examine its impact on India.

Introduction: The World Trade Organization (WTO), established on 1 January 1995 by the Marrakesh Agreement (replacing GATT 1947), is the sole global international organization dealing with the rules of trade between nations. Operating on principles of non-discrimination (Most Favoured Nation / MFN and National Treatment), it governs global trade in goods, services, and intellectual property.

1. Core Aims and Functions of the WTO:

• Aims & Objectives:
  • Facilitating smooth, predictable, and free flow of international trade by lowering tariffs and non-tariff barriers.
  • Raising global standards of living, ensuring full employment, and promoting sustainable development with environmental preservation.
  • Integrating developing and least-developed countries (LDCs) into the multilateral trading system.
• Key Operational Functions:
  • Administering WTO Trade Agreements: Overseeing implementation of GATT (goods), GATS (services), and TRIPS (intellectual property).
  • Forum for Trade Negotiations: Multilateral platform for negotiating tariff reductions and trade facilitation rules (e.g., Doha Development Agenda).
  • Dispute Settlement Mechanism (DSM): Quasi-judicial resolution of trade disputes via the Dispute Settlement Body (DSB) and Appellate Body.
  • Trade Policy Review: Monitoring national trade policies of member countries to ensure transparency and rule compliance.

2. Impact of the WTO on India — Critical Analysis:

• Positive Impacts / Opportunities:
  • Export Growth & Diversification: Secured predictable, non-discriminatory MFN access across 164 global markets, propelling India's service exports (IT/ITeS, business consulting) and manufacturing exports (textiles, pharmaceuticals, auto components).
  • Cheaper Imports & Consumer Welfare: Reduction in customs tariffs lowered costs of imported capital goods, raw materials, and electronics, stimulating industrial efficiency.
  • Dispute Redressal Victories: India successfully challenged protectionist Western policies (e.g., US shrimp-turtle dispute, patent disputes over Basmati rice, Neem, and Turmeric).
• Challenges & Negative Impacts:
  • Agriculture & Food Security Friction (Agreement on Agriculture / AoA): WTO rules cap trade-distorting farm subsidies (Aggregate Measurement of Support / AMS under Amber Box) at 10% of production value. India defended its Minimum Support Price (MSP) and Public Stockholding for food security via the temporary Peace Clause (Bali Package, 2013), yet continues to fight for a permanent solution.
  • TRIPS and Pharmaceutical Access: Strict patent regimes under TRIPS threatened India's affordable generic medicine industry. India successfully protected domestic generic manufacturing through Section 3(d) of the Indian Patents Act (prohibiting evergreening of patents) and Compulsory Licensing.
  • Tariff Pressures on MSMEs: Cheap subsidized imports of manufacturing goods from major exporters (e.g., China) posed competitive challenges to domestic small-scale industries.

Conclusion: The WTO has been a double-edged sword for India. While integrating India into global trade and supercharging service exports, it requires proactive defense of national food security, farmers' livelihoods, and generic pharmaceutical sovereignty in multilateral forums.