General Statement by India under Agenda Item 4 at the Ninth Session 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 (23 to 27 October 2023)  delivered by Mr.K.S.Mohammed Hussain, First Secretary, Permanent Mission of India, Geneva on 23 October 2023

 Thank you Chair,

         Firstly, we congratulate you on your election as the Chairperson-Rapporteur to steer the proceedings of this session. We would also like to thank the High Commissioner for his opening remarks.

Mr. Chair,

The 2030 Agenda for Sustainable Development also recognises the business sector as a key partner for the UN and Governments to achieve the SDGs. With the global role and impact of businesses, the international community has increasingly felt the need to recognise corporate responsibility to respect and protect human rights.

Mr. Chair,

Deliberations have been going on for almost five decades in various international fora, on regulation of the activities of transnational corporations to ensure their fulfilment of corporate social responsibility and respect for human rights. A significant achievement in this regard was the adoption of the UN Guiding Principles on Business and Human Rights by the UN Human Rights Council in 2011. The obligation of protecting and respecting human rights in the business context has assumed greater significance in today’s global complexities and polycrises, especially after the COVID pandemic and ongoing violent conflicts.

Mr. Chair,

India’s endorsement of UNGPs on BHR are in line with our national efforts to impart good governance based on the principle of inclusive development for all.  Our National Guidelines on Responsible Business Conduct issued in 2019, provide the framework on Business Responsibility Reporting in India, taking into consideration the UNGPs  on BHR  as well as keeping in mind the SDGs as key drivers. The top 1000 listed companies are mandatorily required to file Business Responsibility and Sustainability Report under these national guidelines. India has also been working on a National Action Plan on BHR at the domestic level.

India has also taken steps to streamline a gender perspective in our business policies. The Companies Act of 2013 mandates companies to spend at least 2% of their profits on socially beneficial activities, including promotion of gender equality and empowerment of women. Some companies are also required to appoint at least one woman director on their Board.  

These initiatives complement the already existing institutions of an independent judiciary, national and state commissions to monitor compliance with human rights, legal and policy measures, free media, and robust civil society organization sector.

The Working Group has made significant progress since its establishment. We believe that any international legal instrument needs to be flexible and balanced so as to have the widest possible acceptance that will ensure its effectiveness. India reiterates its position that a legally binding instrument on transnational corporations should focus only on business activities of a transnational nature and not on national enterprises, as domestic laws of member states should regulate the latter. The instrument should maintain a fine balance with the socio-economic developmental concerns of developing countries and LDCs, while making transnational corporations more responsible for respect and protection of human rights.

Mr. Chair,

We are committed to engage in a constructive manner in the discussions over this week.     

I thank you.