Indian Agriculture in the Perspective of the Provisions of Domestic Subsidies in the Agreement on Agriculture Under WTO

Several loopholes lie in the domestic subsidy provisions under the Agreement on Agriculture (AoA) which tell upon the health of the agricultural sector of India. Classification of subsidies deliberately favours developed country members by providing them with backdoor-protection mechanism for their agriculture through manipulation of subsidy cuttings and at the same time increasingly corners the weak members of the World Trade Organization (WTO) including India while fulfilling commitments. It also threatens the Indian food security programmes. Agricultural prospects of the country will be further worsened if the developed country members use their policy space to their fullest extent. The domestic subsidy provisions will continue to limit the potential gains of India from its agriculture unless the necessary revision in the provisions is done. The Peace Clause is neither a permanent solution nor a solution ensuring any legal rights. Increase in production efficiency of the Indian agriculture through technological upgradation and side-by-side exertion of continuous pressure jointly by India and other developing country members for necessary revision can help India get rid of the situation of slowdown in its agriculture.