Globalisation: Challenges and opportunities with special reference to WTO regime and indianeconomy

Globalization has many meanings depending on the context and on the person who is talking about. The process of globalisation involves a change in the role of state. However, this does not, in any way, mean re-adoption of laisses faire on reversion to the principal of police state. Under globalisation, the state continues to be a welfare state. However, its economic activity is getting confined with the activities which are essentially needed for the operation of economy. It acts as a facilitator and coordinator and refrains from acting as an owner and regulator. It acts to ensure a smooth and orderly function of the market. The two major developments impacting Indian Agriculture during nineties have been: (a) The Agreement on Agriculture implemented from 1st January, 1995 under WTO, and (b) Emergence of highly volatile price regime thereafter. Several recent studies, on the causes of poor performance of agriculture, often relate to WTO Agreement on agriculture and its likely adverse implications against promise. The global scenario in future is going to become more competitive and the pressure for liberalisation of domestic market would also grow. In this context, India needs to follow two pronged strategy. One, based on the post WTO experience of last ten years India should continue taking active part in negotiating agreement to its advantage with sound agreements. This would require objective understanding of the implications of the changed trade regime, promoted and planned under the auspices of WTO. Such as understanding of the implications of the changed trade regime, promoted and planned under the auspicious of WTO.