India got the highest aid for trade from developed countries in 2020

India got the most trade funding from wealthy countries in 2020, totalling $2.7 billion while receiving less during the epidemic year than it did in 2019.

The World Trade Organization-led trade flow assistance is aimed specifically at the least developed economies. It consists of official development assistance for the development of supply-side capability and trade-related infrastructure for these countries to participate in international trade.

Bangladesh received the second most aid, trailing Egypt, Ethiopia, Kenya, Vietnam, Pakistan, Morocco, Myanmar, and Indonesia, among others. Top aid providers include the World Bank, European Union institutions, the Asian Development Bank, and industrialised countries such as Japan, the United States, Germany, and France. “The Aid for Trade initiative can and should aim to help develop critical trade infrastructure while supporting climate-friendly, resilient and soci- economically inclusive outcomes,” WTO Director-General Ngozi Okonjo-Iweala said in a statement.

According to the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD) joint Aid for Trade at a Glance 2022 study, aid for trade pledges climbed by 18% in 2020, hitting an all-time high of $64.6 billion. The total disbursement in 2020 was $48.7 billion, which equals India receiving 4% of total payments.

However, trade experts say that figures showing India, a developing country, receiving the most aid under the WTO scheme may be inaccurate. The usefulness of trade aid has only been reaffirmed as a tool to buffer the impact of the crisis, according to the report, amid a series of disruptions in global trade, beginning with the outbreak of Covid-19 in 2020 and a Russia-Ukraine conflict in 2022.

Several new trade aid projects have been launched to specifically address pandemic-related concerns. Covid-19-related activities received $4.7 billion in such aid in 2020. This equates to 7% of total aid that year.