WTO and multilateral trade in 21st century: Challenges and opportunities for developing countries with special reference to India

Abstract

The World Trade Organization (WTO) has remained the cornerstone of the multilateral trading system since its establishment in 1995, facilitating international trade through a rules-based framework. In the twenty-first century, developing countries have experienced both new opportunities and emerging challenges arising from trade liberalisation, digital transformation, geopolitical uncertainties, and changing global value chains. The present study examines the role of the WTO in promoting multilateral trade with special reference to India and evaluates the opportunities and constraints faced by developing economies under the evolving global trade environment.

The study adopts a descriptive research design and is based entirely on secondary data collected from WTO publications, UNCTAD reports, World Bank databases, Government of India reports, RBI publications, the Economic Survey, and peer-reviewed research articles. Recent trade statistics indicate that India has emerged as one of the fastest-growing trading nations. According to the WTO (2024), India ranked among the world's leading exporters of commercial services, with services exports exceeding US$340 billion in 2023, while the country's total merchandise exports reached approximately US$437 billion during 2023–24. These developments demonstrate India's increasing participation in global trade despite persistent challenges such as non-tariff barriers, agricultural subsidies, supply chain disruptions, and digital trade regulations.

The study concludes that an effective multilateral trading system, supported by WTO reforms, enhanced trade facilitation, digital competitiveness, and sustainable trade policies, can significantly strengthen the economic prospects of developing countries. For India, continued engagement with the WTO, coupled with domestic trade reforms and export competitiveness, will be essential for achieving inclusive growth and the vision of Viksit Bharat@2047.