Investment Facilitation for Development (IFD) and India’s Concerns

The Investment Facilitation for Development (IFD) Agreement, a China-led initiative at the World Trade Organization, is set to be a key agenda item at the organisation’s 14th Ministerial Conference being held in Cameroon.

Push for Inclusion in WTO Framework

Member countries are expected to discuss incorporating the IFD Agreement into the Marrakesh Agreement, which established the WTO in 1995. If accepted, this would formally integrate the pact into the global trade body’s legal framework.

Growing Global Support

• The agreement has seen rising backing—from 70 countries in 2017 to 128 out of 166 WTO members as of 2025.
• It aims to improve investment climate, streamline procedures, and promote foreign direct investment (FDI) flows, particularly benefiting developing and Least-Developed Countries (LDCs).

India’s Opposition

India, along with South Africa, has opposed the agreement, raising concerns over its plurilateral nature.

• India argues that incorporating IFD through a plurilateral route undermines the WTO’s core principle of multilateralism and consensus-based decision-making.
• Under WTO norms, all members must agree (consensus) for major decisions, ensuring equal voice to every country.
• Plurilateral agreements, however, apply only to participating members, allowing smaller groups to move forward without full consensus.

Key Concerns

India has cautioned that such agreements may:

• Bypass the interests of developing nations and LDCs
• Enable selective rule-making in areas impacting weaker economies
• Erode the foundational structure of the WTO

Source: Ie