Impact of WTO Agricultural Reforms on India's Agricultural Trade Competitiveness

Abstract

                The establishment of the World Trade Organization (WTO) in 1995 and the entry into force of the Agreement on Agriculture (AoA) brought about a fundamental change in the global agricultural trade framework. The Agreement on Agriculture (AoA) under the World Trade Organization (WTO) redefined global agricultural trade by promoting market-oriented reforms and reducing protectionism. For the Indian economy, this has deep agricultural roots, this transition brought about a significant policy shift towards liberalization, market integration, and export orientation. This paper critically examines how the WTO agricultural reforms have impacted India’s agricultural trade performance and competitiveness. Using secondary data from 1990 to 2024, it analyses export-import trends, assesses competitiveness using the Revealed Comparative Advantage (RCA) index, and assesses welfare outcomes for farmers and rural producers. The study finds that India’s export competitiveness has strengthened significantly in traditional exports such as rice, seafood, and cotton, while there has been a relative decline in traditional exports such as tea and coffee.  Despite the overall economic benefits, challenges remain in the form of non-tariff barriers, limited infrastructure and unequal benefits for small farmers. The paper concludes that sustainable trade competitiveness will depend on productivity growth, policy coherence and inclusive trade reforms. Although the WTO AoA has benefited greatly from the export of some products, in recent times there has been a situation where farming is becoming unaffordable due to rising production costs. Therefore, the government should think in the farmers’ favour and create a system that protects the interests of Indian farmers.