The Most Favoured Nation (MFN) Clause under WTO regime is based on the principle of nondiscrimination between the nations.According to the MFN principle of the WTO’s General Agreement on Tariffs and Trade (GATT), to which India is a signatory/contracting party, each of the WTO member countries should “treat all the other members equally as ‘most-favoured’ trading partners”. The WTO says, “Grant someone a special favour (such as a lower customs duty rate) and you have to do the same for all other WTO members.” Hence, though MFN sounds like a special treatment, in effect it means non-discrimination