However, what can hurt post this stand can be the declined curiosity of foreign investors who have quite often underwent pain while doing business in India. Retrospective taxation, delayed clearances, and now India’s verdict of standing by the longstanding view of not curtailing subsidy and stockpiling can disseminate a message that a promising developing country, India, is not ready to form consensus with the developed nations.
Many economists and think tanks, post India’s conclusion in Geneva, are in suspense that we are turning out as a business partner who does not respect contractual onuses and is not thus trustworthy enough to do trade with.
On the contrary, another key concern is the wide dependency of our underprivileged families on food security. Accept it or not, the WTO norms of limiting the value of subsidy on food at 10 percent of total food grain production of the country, is not just what India can afford with such a bulky portion of population below the poverty line.
Stockpiling of food is thus a pre-emptive measure that the government has to make sure citing the need for food security. While on one hand, the UPA-2 has passed over the burden of implementing the food security module on the shoulders of the new government, the WTO’s TFA is toughening the job even further.
The Indian administrators and their advisors are ready to postpone the TFA protocol until the WTO finds out a workable solution for the concerns of public stockholding. For sure, the minds at work must have comprehended country’s and countrymen’s essentials which cannot be put at stake owing to pressure from overseas partners or the WTO.
Still, Mr. Modi’s persona of a ruler who believes in easing the path for businesses is bound to writhe, if not largely, to some extent, due to delayed execution of TFA. Weighing precisely the internal needs of the economy with respect to seeking support from outside is a tough job to handle; however is much-needed.