Bangladesh joins 129-nation pact to streamline global investment rules

Bangladesh has become the latest country to join the Investment Facilitation for Development (IFD) Agreement, raising the total number of co-sponsors to 129. The pact aims to create clearer international rules, speed up investment processes, and improve cooperation between nations. Meanwhile, global foreign direct investment (FDI) grew by 14 percent in 2025, though recovery in many regions remains weak. The IFD agreement seeks to simplify investment procedures and increase transparency for businesses operating across borders. Supporters argue that integrating it into the World Trade Organization (WTO) framework would help developing economies attract more FDI. However, India has refused to back this move, citing concerns over potential risks to the WTO's existing structure.

India's commerce and industry minister warned that incorporating the IFD could stretch the WTO's mandate too far. The country needs significant FDI to expand its manufacturing sector and access advanced technologies. Yet, despite these needs, officials remain cautious about adopting the agreement. Global FDI trends highlight the challenges facing developing nations. While overall investment rose last year, flows to these economies fell by 2 percent to $877 billion. The decline hit lower-income countries the hardest, reinforcing the need for measures like the IFD to stimulate growth.

The IFD agreement now has 129 co-sponsors, with Bangladesh's participation adding further momentum. For countries like India, balancing the need for investment with concerns over WTO rules remains a key issue. The agreement's success in boosting FDI will depend on how effectively it addresses procedural barriers and strengthens international cooperation.