Permanent Mission of India to the WTO
Geneva
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100th Session on Sub-Committee on LDCs: 30 Years of LDCs' Trade Development at the WTO
11 November 2024
India’s Statement delivered by Permanent Representative and Ambassador of India to WTO
Thankyou Chair. I am very happy to be here amongst an elite panel on this some sort of a momentous occasion being the 100th Session of the Sub-Committee on LDCs. However, it is worrying at the same time that our LDC friends continue to face significant challenges in achieving economic growth and integrating into global markets. The concept of leaving no one behind remains only a slogan. The poly crises have exacerbated their challenges with mounting debt burden, a shrinking fiscal space that limits their ability to implement development policies and forces them to make tough choices while grappling with challenges in trade health, education and even climate action. Often LDCs have been forced to unfairly shoulder the burden of other’s wrong, particularly in sustainability, be it environment, or fisheries or agriculture.
- As a key trading partner, India has undertaken numerous initiatives to partner LDCs in overcoming these challenges and becoming active players in global trade.
Trade Preferences and Market Access
- India has granted preferential market access to exports from LDCs through initiatives such as the Duty-Free Tariff Preference (DFTP) scheme. Launched in 2008, the DFTP scheme allows LDCs to export nearly 98% of their tariff lines to India duty-free. As of now, 35 LDCs are participating in DFTP, which has significantly boosted their export volumes to India.
Capacity Building and Technical Assistance
- Recognizing the importance of capacity building, India has provided technical assistance and training programs to improve the trade-related capabilities of LDCs. The Indian Technical and Economic Cooperation (ITEC) program offers over 10,000 scholarships annually to participants from various countries, including LDCs. These training courses equip participants with the knowledge and skills needed to navigate the complexities of international trade. Over 160,000 professionals from 161 countries have benefited from ITEC programs over the years.
Investment and Infrastructure Development
- India has also invested in infrastructure projects in LDCs to enhance their trade capacities. India has invested significantly in infrastructure projects across Africa, including road networks, ports, and telecommunications infrastructure. Improved infrastructure facilitates the efficient movement of goods and services, reducing trade costs and improving competitiveness. Additionally, Indian companies have invested in various sectors in LDCs, fostering economic development and job creation. Development assistance in the form of concessional Lines of Credit (LOCs) is extended by the Government of India under the Indian Development and Economic Assistance Scheme (IDEAS) through the Exim Bank of India. In total, more than 300 LOCs worth US$ 32 billion have been extended to 68 countries across the world. These Lines of Credit cover around 600 projects in sectors like railways, roads, agriculture, industry, airport, sports stadiums, port, hospitals, disaster management, hydroelectricity, power transmission and Information Technology
Regional Integration and South-South Cooperation
- India promotes regional integration by participating in and supporting regional trade agreements and initiatives. India's engagement in South-South cooperation initiatives, such as the India-Africa Forum Summit, further strengthens trade and economic ties with LDCs, promoting mutual growth and development. India has provided line of credit to over 300 projects in 41 LDCs, including water supply, agriculture, and energy development. Other efforts of Indias have been the India-UN Development Partnership Fund which focuses on partnering with small island developing states, LDCs, and landlocked developing countries
- Through initiatives like the International Solar Alliance (ISA), India promotes the use of solar energy in developing countries, including LDCs. The ISA aims to mobilize resources and facilitate technology transfer to accelerate the adoption of renewable energy and reduce dependence on fossil fuels.
Strategies for LDCs to Enhance Global Trade Participation
Diversifying Export Products and Markets
- Diversification of export products and markets is crucial for LDCs to reduce their dependence on a few commodities and markets. LDCs should focus on value addition and the development of new sectors, such as manufacturing, services, and technology. LDCs accounted for only about 1% of global merchandise exports, highlighting the need for diversification. According to UNCTAD, LDCs that diversified their export base saw higher economic growth rates compared to those reliant on a single commodity. Membership at the WTO must engage to assess as to how to help LDCs in their diversification.
Capacity building- Human Capital
- Investing in education and skills development is essential for LDCs to enhance their competitiveness in global markets. They need to focus on improving access to quality education, vocational training, and higher education. Developing a skilled workforce enables LDCs to engage in high-value trade activities and attract investments in knowledge-intensive sectors. As I mention earlier, India’s effort in this regard has been to contribute to capacity building and human resource development in these countries through extensive scholarship and ITEC programmes.
Capacity building: Infrastructure, processes, and Trade Facilitation
- Trade facilitation measures, such as, improving logistics, simplifying customs procedures would boost trade for LDCs. Implementing digital solutions and adopting international best practices can streamline trade processes and reduce costs. In this context LDCs need significant assistance and resources. We must discuss as to how we could help LDCs. India's has partner with LDCs for digital trade facilitation initiatives, such as the e-Vidya Bharti and e-Arogya Bharti (Tele-education and Tele-medicine) Network Project, has improved access to education and healthcare services in LDCs.
Leveraging Technology and Innovation
- Technology and innovation play a pivotal role in global trade. LDCs should leverage technological advancements to improve productivity, reduce costs, and enhance competitiveness. Investing in digital infrastructure, promoting e-commerce, and encouraging innovation can open new avenues for trade and economic growth. For example, e-commerce in Africa is expected to reach $75 billion by 2025, providing significant opportunities for LDCs to expand their trade. 12. India's would be willing to partner the LDC through digital initiatives, such as the Pan-African e-Network Project, which has enhanced connectivity and access to information and communication technologies in LDCs. Further, digital public infrastructure capabilities would be a boon. India remains willing to work with LDC on this. WTO must also discuss for facilitating technology transfer on preferential terms to LDCs and we should also be discussing the issues of trade and technology financing.
Better engagement in preferential access programmes.
- Improved participation in the preferential access programmes like India’s would provide LDCs with greater market access and trade opportunities. WTO Committees must work on these aspects and engage actively to facilitate and help LDC in getting better opportunities for market access, value addition and diversification.
LDCs graduation:
- Within the framework of the WTO, the proposals to facilitate the graduation of LDCs to developing country status. The graduation process aims to recognize the progress made by LDCs in economic and social indicators while providing them continued support to ensure a smooth transition. India has been a strong advocate for a fair and gradual graduation process that minimizes trade disruption and maintains special and differential treatment for graduating LDCs.
- India's efforts to integrate LDCs into global markets reflect its commitment to inclusive and sustainable development. India’s development partnership has been guided by LDCs priorities. It has been on terms that is comfortable them, with the idea that it liberates their potential and not constrain your future. Through collaborative efforts and mutual support, LDCs can achieve shared prosperity and contribute to a more equitable global trading system.
- I would like to conclude by reiterating that India's approach to supporting LDCs is rooted in principles of solidarity, mutual respect, and shared benefits.
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