India’s Trade and Agriculture in Pre and Post-WTO Regime

Abstract

This study examines the impact of the World Trade Organization (WTO) on India's trade and agriculture sectors during both the pre and post-WTO periods. Using data from secondary sources such as Economic Surveys, government reports, and RBI publications, the study analyzes various economic indicators including gross value added (GVA) at factor cost, total exports and imports, agricultural exports, and the share of agriculture in national income. The findings reveal that during the pre-WTO period, India experienced steady growth in national income and agricultural exports, with a declining share of agriculture in the economy—a positive trend indicating economic diversification. However, the post-WTO period saw a significant increase in total exports and imports, accompanied by a worsening trade balance and declining terms of trade for India. Despite a higher growth rate in national income post-WTO, the trade scenario became increasingly unfavorable, with imports growing at a faster pace than exports. The study suggests that while globalization, as facilitated by the WTO, has its benefits, policymakers need to strike a balance between globalization and protectionism to safeguard national interests. It emphasizes the importance of recognizing the relevance of protectionist policies alongside globalization to address the challenges faced by developing economies like India.