During eighth Five year plan, India became a member of the World Trade Organization on 1 January _______.

The correct answer is 1995.

Key Points

• India became a member of the World Trade Organization (WTO) on 1 January 1995.
• The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade.
• WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, replacing the General Agreement on Tariffs and Trade (GATT).
• As a member of the WTO, India has to adhere to its rules and regulations and can benefit from the international trading system.

Additional Information

• World Trade Organization (WTO)
  • The WTO is the only global international organization dealing with the rules of trade between nations.
  • Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible.
  • The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development.
  • The WTO also provides a legal and institutional framework for the implementation and monitoring of these agreements, as well as for settling disputes arising from their interpretation and application.
• General Agreement on Tariffs and Trade (GATT)
  • The GATT was a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.
  • It was signed by 23 nations in Geneva on October 30, 1947, and took effect on January 1, 1948.
  • The GATT was intended to boost economic recovery after World War II through reconstructing and liberalizing global trade.
  • The GATT continued to exist until it was replaced by the WTO on January 1, 1995.
• Marrakesh Agreement
  • The Marrakesh Agreement established the World Trade Organization, signed in Marrakesh, Morocco, on April 15, 1994.
  • The agreement marked the culmination of the Uruguay Round of GATT negotiations, which lasted from 1986 to 1994.
  • It resulted in the most significant reform of the global trading system since the GATT was created in 1948.
  • The Marrakesh Agreement incorporated the GATT framework and expanded it to include new areas such as services and intellectual property.