(a) Explain the role of World Trade Organization (WTO) in the present context. Discuss the merits and demerits of TRIMs and…

WTO in the Present Context, TRIMs, and TRIPs

The multilateral trading architecture under the World Trade Organization (WTO) faces systemic friction, marked prominently by the paralysis of its dispute settlement mechanism due to the non-appointment of Appellate Body members. Simultaneously, preserving Special and Differential Treatment (S&DT) remains essential for developing countries to protect food security and rural livelihoods amidst rising global protectionism. Nonetheless, the 12th Ministerial Conference (MC12) demonstrated WTO’s continued relevance through consensus on curbing harmful fisheries subsidies and granting a temporary patent waiver for COVID-19 vaccines.

Trade-Related Investment Measures (TRIMs) eliminate trade-distorting investment policies. Its primary merit is fostering predictable, non-discriminatory foreign direct investment (FDI) inflows and integrating developing nations into global value chains. However, its demerit lies in restricting domestic policy space by prohibiting Local Content Requirements (LCRs). For instance, India had to dismantle its phased indigenisation and export-balancing requirements in the automotive sector following WTO dispute findings.

Trade-Related Aspects of Intellectual Property Rights (TRIPs) establishes uniform intellectual property standards, incentivising global technological research and commercial innovation. Its major demerits include inflated monopoly pricing of life-saving drugs, biopiracy of traditional knowledge, and technological concentration in developed economies. India reconciled TRIPs compliance with public health priorities by enforcing Section 3(d) of the Patents Act, 1970—upheld by the Supreme Court in Novartis v. Union of India (2013) to prevent evergreening—and preserving provisions for Compulsory Licensing.

Economic Growth and Sustainable Development: Contradiction or Compatibility

Economic growth and sustainable development are not inherently contradictory; the tension is contingent on technological adoption, energy intensity, and policy design. The Environmental Kuznets Curve (EKC) hypothesis demonstrates that early stages of industrialisation inevitably degrade natural capital, but post-industrial stages can achieve relative or absolute decoupling between GDP growth and environmental footprint through green technology, circular economy practices, and the UN Sustainable Development Goals (SDG) framework.

Empirical evidence across Indian states illustrates this dynamic. The traditional Gujarat model achieved high per capita output via resource-intensive manufacturing, while the Kerala model prioritised human capital and social safety nets with lower industrial emissions. The NITI Aayog SDG India Index highlights that high-performing states can balance economic dynamism with ecological management. Furthermore, India’s target of 500 GW of non-fossil energy capacity by 2030 proves that clean energy transitions can drive capital formation, energy security, and job creation without retarding economic expansion.

Role of Planning in a Market-Oriented Economy

The expansion of market mechanisms has redefined planning from prescriptive, resource-allocating dirigisme to strategic, indicative, and market-enabling governance. While price mechanisms ensure allocative efficiency in private goods, markets fail to address systemic externalities, spatial regional disparities, long-gestation infrastructure investments, and human capital formation. Planning bridges these critical market failures.

In India, this evolution is institutionalised through NITI Aayog, which replaced Five-Year Plans with a long-term strategic framework comprising a 15-Year Vision, 7-Year Strategy, and 3-Year Action Agenda. Planning now functions through cooperative federalism and the sub-national localization of SDGs. Modern planning instruments—such as the PM Gati Shakti National Master Plan for integrated multimodal infrastructure and the Production Linked Incentive (PLI) schemes—do not supplant markets. Instead, they de-risk private investment, eliminate logistics bottlenecks, and direct market forces toward high-value strategic sectors, establishing a synergy between state direction and market enterprise.