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Do you think the recently amended FDI regulation by the Government of India challenges the scope of World Trade Organization? Analyse.

Topic:  Important International institutions, agencies and fora- their structure, mandate.

5. Do you think the recently amended FDI regulation by the Government of India challenges the scope of World Trade Organization? Analyse.(250 words)

Reference:  Financial Express 

Why this question:

 India recently amended its FDI policy by subjecting investments from countries with which it shares a land border to screening under the approval route and making them ineligible under the automatic route. Thus the question.

Key demand of the question:

Explain the scope of recent FDI policy amendments and analyse if these changes challenge the scope of WTO.

Directive:

AnalyzeWhen asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary.

Structure of the answer:

Introduction:

Present brief background to the context.

Body:

Bring out the concerns brought to fore by the recent FDI policy amendments. Although none of the WTO agreements directly seek to regulate it, some contain provisions that may have implications for foreign investment. One such agreement is the General Agreement on Trade in Services (GATS). Talk about the GATS, concept of most favored nation (MFN) treatment etc. Bring out the challenges.

Conclusion:

Conclude with way forward.