An Analysis of the WTO Agreement's Impact on India's Agricultural Exports

Abstract The WTO Agreement on Agriculture (AoA) came into force in 1995 and since then India’s agricultural trade structure has undergone a major transformation, shaped by three pillars: market access, domestic support and export subsidies. Over the past three decades, India has transformed from a relatively inward-looking agricultural economy to a significant exporter in global agricultural trade. India’s agricultural exports have increased almost eightfold, from US$6.7 billion in 1995-96 to around US$53 billion in 2022-23, accounting for nearly 11 per cent of India’s total trade exports. Major agricultural export commodities include rice (US$10.9 billion), marine products (US$8.1 billion), spices (US$4.3 billion), sugar (US$4.1 billion) and cotton (US$2.5 billion). Imports have also grown significantly, particularly in pulses, edible oils and fruits, reflecting the twin forces of tariff liberalisation and changing dietary patterns driven by urbanisation and income growth. India has consistently used Special and Differential Treatment (S&D) provisions to protect policy space for food security, minimum support price (MSP) and rural livelihoods. However, WTO disputes such as the US-led challenge on sugar export subsidies (2019) and the ongoing negotiations on the Public Stock Holding (PSH) programme since 2013 highlight India’s policy tension between domestic food security objectives and multilateral commitments. As India navigates the complexities of global agricultural trade, it needs to focus on increasing productivity, diversifying exports, strengthening value chains and ensuring sustainable food security in a liberalised but increasingly volatile global environment.