In April 1994, India became a member of the World Trade Organisation (WTO) by signing the Marrakesh Agreement. The Agreement was signed by then Prime Minister, Mr. P.V. Narasimha Rao, who was instrumental in bringing about economic reforms in India.
The Marrakesh Agreement is the founding document of the WTO, which is an international organisation that regulates global trade between nations. It lays down the rules for trade between the member countries by promoting fair and open trade practices. The Agreement covers a wide range of issues, including tariffs, subsidies, intellectual property rights, and dispute settlement mechanisms.
India’s accession to the WTO was a significant step forward in integrating the country into the global economy. It opened up new opportunities for Indian businesses to trade with other countries, and also enabled foreign firms to access the Indian market.
Since joining the WTO, India has played an active role in shaping the global trade agenda. It has participated in various negotiations and has been a vocal advocate for the interests of developing countries. India has also used the dispute settlement mechanism of the WTO to resolve trade disputes with other countries.
India’s membership of the WTO has had both positive and negative impacts on the Indian economy. While it has provided greater access to global markets, it has also exposed Indian firms to competition from foreign companies. The Agreement has also been criticised for its impact on small farmers and workers in India, who have been negatively affected by the opening up of the agricultural and services sectors.
Overall, India’s membership of the WTO has been an important milestone in the country’s economic history. It has helped to increase India’s integration into the global economy and has opened up new opportunities for trade and investment. However, it has also brought challenges and has highlighted the need for the country to develop a more strategic approach to trade policy.