India's Shift on Plurilateral Deals at BRICS Summit

11:12 PM ETDeveloping

Health Desk

In Short: India, traditionally against plurilateral deals, appears to be reconsidering its stance after the BRICS summit, according to reports.

The Indian Express reports that the New Delhi Declaration from the recent BRICS summit recognized the importance of identifying "pathways" for plurilateral initiatives within the World Trade Organization (WTO) legal framework. However, a trade expert noted that the term "guardrails" was notably absent from the declaration, despite India being the BRICS chair.

India has consistently opposed plurilateral trade agreements, which are negotiated and implemented by exclusive groups rather than all WTO members. However, the 2026 BRICS Summit declaration suggests a shift in India's position, indicating a willingness to explore such deals, particularly those backed by major trading powers like China. This change comes just months after India expressed strong reservations against such pacts at the WTO's 14th Ministerial Conference (MC14) in Cameroon.

According to the Commerce and Industry Ministry, India did not agree to the incorporation of the China-backed Investment Facilitation for Development (IFD) plurilateral pact into the WTO rulebook, citing systemic risks and the argument that investment is not a core trade issue. The ministry stated that India was open to comprehensive discussions and constructive engagement under the WTO Reform Agenda.

The Indian Express also reports that India was the only country opposing the IFD, with several countries, including Canada, reportedly targeting India during its trade policy review. The EU, while encouraging India to reconsider its approach to plurilateral agreements, suggested that such deals could be an opportunity to modernize the WTO rather than a threat to multilateralism.

India's stance on plurilateral agreements is increasingly being featured in various WTO reform-related proposals. The shift in India's position could have significant implications for the future of trade negotiations within the WTO, as it signals a potential openness to exploring new forms of cooperation among trading powers.

What's still developing

“The BRICS statement mentions plurilateral on development-related issues. To illustrate, if we want a permanent solution on food security, can we start a plurilateral. But if developed countries don’t join the plurilateral, we will get nothing meaningful out of it. Similarly, if we want a reduction in farm subsidy of the developed countries and developed countries don’t participate in that plurilateral, the outcome will be irrelevant. On development related issues, plurilateral cannot be the route, it has to be multilateral,” the expert said.
India said that IFD’s incorporation risks eroding the foundational principles and functional limits of the WTO.
“The Marrakesh Agreement requires consensus to add an Agreement to Annex 4. Consensus was not reached on two occasions. In the absence of consensus, we would like to understand the institutional basis on which the Interim Arrangements are operating,” India said.
While Canada most prominently opposed India’s stand on plurilateral agreements, the EU said that over the past decade, India has benefited significantly from its integration into global trade and has increased its share in world trade.
A European Union representative also said that the bloc “encourages India to rethink its approach to plurilateral agreements” and to “consider them as an opportunity to shape the agenda of the WTO and to modernise the organisation rather than as a threat to multilateralism — which they are not, if we build them properly”.

Sources

The Indian Expresslink