General Statement by India under Agenda Item 4 at the 6^th Meeting of the Open-Ended Intergovernmental Working Group for the elaboration of an International Legally Binding Instrument on Transnational Corporations and other Business Enterprises with respect to Human Rights, delivered by Mr. Animesh Choudhury, First Secretary, on 26^th October 2020.

Thank You Mr. Chair,

            At the outset the delegation of India would like to congratulate you on your election as the Chairperson-Rapporteur to steer the proceedings of this session.

We would like to thank the High Commissioner for Human Rights for her opening remarks. We also thank the Minister of Foreign Affairs and Human Mobility of Ecuador for his remarks.

Mr. Chair,

2. 2. Business enterprises play a key role and impact the lives of people with their activities. The 2030 Agenda for Sustainable Development as adopted by the United Nation General Assembly (UNGA) also recognises the business sector as a key partner for the United Nations and governments to achieve the sustainable development goals. Considering the global expansion of businesses, the international community has increasingly felt the need to recognise the corporate responsibility of businesses to respect human rights.

Mr. Chair,

3. 3. In the international forums, deliberations have been now going on for almost five decades on the subject of regulation of the activities of transnational corporations so as to ensure corporate social responsibility and respect for human rights. A significant achievement on this subject was the adoption of the United Nations Guiding Principles on Business and Human Rights by the United Nations Human Rights Council in 2011.

Mr. Chair,

5. 4. As the largest democracy in the world, protection of human rights has been an intrinsic part of the Indian tradition. India’s rich cultural values are based on the principle of inclusive development for all. India is one of the few countries to have statutorily mandated Corporate Social Responsibility by law. Companies having a certain threshold turnover have been mandated by law in India to spend at least 2% of their average net profits of the preceding three years on socially beneficial activities.India’s Companies Act 2013 make a significant departure from the traditional shareholder model to the more progressive and inclusive stakeholder model. This ensures that businesses look beyond the shareholders as far as the impact of their activities on the society at large is concerned.

6. 5. These efforts have been complemented by voluntary measures such as the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Businesses, 2011 that take into account the UNGP framework. These National Voluntary Guidelines were further updated in 2018 to make way for the National Guidelines on Responsible Business Conduct. These Guidelines which contain 9 core principles have been formulated in alignment with the SDGs and UNGPs.

Mr. Chair,

7. 6. India has also been working on a National Action Plan on BHR at the domestic level. We have already had a series of Inter-Ministerial Consultations, consultations with various Stakeholders as well as regional consultations during this exercise. This is an ongoing process.

8. 7. These initiatives at the national level in India complement already existing machinery comprising of an independent judiciary, national and state commissions to monitor compliance with human rights, legal and policy measures and an independent media.

Mr. Chair,

9. 8. The process of the HRC Resolution 26/9 of 2014 has mandated this Open-ended Intergovernmental Working Group with the responsibility to elaborate an international legally binding instrument to regulate the activities of transnational corporations and other business enterprises. Unlike the UNGPs which adopt a soft law approach on the subject, a legally binding instrument will have a binding effect and complement the goal of the UNGPs. This working group is now into its sixth session and has made marked progress since its first session.

Mr. Chair,

10. 9. In this context, we believe that enhanced discussion and further clarity is still required on a number of elements in the current draft text, including on scope, jurisdiction, and rights of victims amongst others. India reiterates its position that this instrument should focus only on business activities of a transnational nature and not to national enterprises as we already have domestic laws to regulate them. Such an instrument needs to maintain a fine balance with the socio-economic developmental concerns of developing countries and LDCs on one hand while also making transnational corporations more responsible in the protection of human rights. We believe, any international legal instrument needs to be flexible and balanced so as to have the widest possible acceptance that will ensure its effectiveness.

Mr. Chair,

11. 10. We understand that the discussions and negotiations on this subject will be a long drawn process and are committed to engage in a constructive manner in the discussions over this week.

Thank You.