WTO AND INDIA: TIME FOR RENAISSANCE OF THE FARM SECTOR

Abstract

Indian farm sector and Indian economy complement each other in growth. To understand Indian economy, it is necessary to understand the farm sector. Indian farm sector was once the pride of the nation and is now in a languishing state. The farm sector reached its peak in the last century and the glorious era earned sobriquet of “Green Revolution”. Last decade is known for introducing eminent changes in the economy which were the economic reforms of 1991 and joining of the WTO. The reforms were responsible for creating an era of liberalized economic policy regime which has played a decisive role in changing the performance of the industry and services sector but no eminent change has been created in the farm sector. The WTO agreements are promoting free and fair trade among the member nations by way of removal of obstacles in trade. Indian farm sector, after the last decade’s policy changes, is in a crucial juncture. The criticality of this sector could be more illustrious with the fact that even after sixty years of independence the population dependence on farm sector has very marginally declined but its share in the GDP has significantly declined. The farm sector at this juncture is facing the issues of low production and low productivity which have not improved after the reforms and the external environmental change in post-WTO regime. This paper tries to analyze the issues of concerns and care required for making renaissance of the farm sector.