A Study of Impact of the WTO Regime on Indian Agricultural Commodities

Agriculture sector of Indian economy is one of the most significant parts of India. Agriculture is the only means of living for almost two-thirds of the employed class in India. Agriculture plays a vital role in India's economy; over 60% of the rural households depend on agriculture as their principal means of livelihood. The agriculture sector of India has occupied almost 43% of India's geographical area. Agriculture also plays a significant role in the growth of socio-economic sector in India. The WTO was established on January 1st, 1995 by replacing General Agreement on Tariffs and Trade (GATT), which was in existence from 1947 to 1994. The WTO Agreement on Agriculture (AoA) came into force on 1 January 1995. The share of Agriculture Sector in the national Gross Domestic Product (GDP) at constant prices decreased from 55.1% 1990–91 to 15.35% in 2015–16, and about 70% people find direct and indirect employment in the agriculture sector in India. India is a founder member of the WTO. The WTO is based on the principles of non-discrimination, free trade, and promotion of fair competition among the member countries. As on 30 November 2015, total 162 countries are the member countries of the WTO. As India prepares to engage itself in negotiations which are deemed to benefit the country, a number of crucial issues have surfaced, which need to be debated within the country and presented to the special session of the WTO committee on Agriculture in Geneva. The main purpose of this paper is to impact of the WTO Regime on Indian agricultural commodities.