129 Nations Back IFD Agreement, but India's Opposition Stalls WTO Progress

A total of 129 countries now back the Investment Facilitation for Development (IFD) agreement after Bangladesh joined as the latest co-sponsor. The pact aims to create clearer global rules, speed up investment processes, and boost international cooperation. Yet, despite growing support, key nations like India remain opposed to its inclusion in the World Trade Organization (WTO) framework. The IFD agreement seeks to improve investment transparency and simplify procedures for cross-border funding. Proponents argue that integrating it into the WTO would logically drive more investment, especially into developing economies. Global foreign direct investment (FDI) did rise by 14% in 2025, but flows to poorer nations actually fell by 2%, highlighting the need for stronger measures.

India's refusal to support the agreement has drawn criticism, with some calling its concerns over WTO overreach unfounded. The country's commerce minister warned that adopting the IFD could stretch the WTO's mandate too far. Meanwhile, analysts suggest India's manufacturing sector urgently needs FDI to expand capacity and stay competitive. China and India, as major voices in the Global South, have been urged to work together within regional and multilateral frameworks to safeguard developing nations' interests. However, as of March 2026, the WTO has yet to implement any concrete steps to promote or enforce the agreement. Without formal adoption, the pact remains stalled, lacking plurilateral enforcement mechanisms.

The IFD agreement now has 129 backers, but its future within the WTO remains uncertain. Without India's support and no active enforcement measures in place, progress depends on further negotiations. For now, the pact's potential to streamline global investment stays unrealised.