India has been associated with international trade institutions right from their inceptions. GATT came into existence in 1948 with the objective of creating a competitive trade regime while providing requisite protection for economically weaker countries.
It was short of a full-fledged and all round binding institutional framework. But over decades it substantially contributed, though at a slow pace, to market orientation of the world trade regime.
Its aim was to stimulate trade growth through a reduction in tariff and non-tariff barriers on imports. It was a useful forum of mutual discussions on problems and issues related to international trade.
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However, its overall scope was rather limited since it did not extend to trade in services and several other emerging areas of intense importance in international economic relations.
The Eighth Round of GATT, commonly known as the Uruguay Round, gave birth to WTG and sought to incorporate the new developments in the field of international economic relations and activities.
Some of these (like TRIPS and TRIMS) continue to be non-palatable to the developing countries and beneficial to the developed ones, while some others like GATS have a double-edged potential. GATS can become an important source of gains to a country for being a member of the WTO or it can be a major growth impediment for it.
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It, all depends upon the negotiating skills of the member countries as also upon actual provisions of GATS and their practice. GATS happen to be of particular importance to India on account of its growing participation of trade in services.