Impact Of Wto Agreement On Indian Economy

The WTO agreement on agriculture has negative and positive effects on Indian agriculture. About 70% of India`s population depends on agriculture, so total export – the import of agricultural raw materials depends directly or indirectly on WTO legislation. WTO standards therefore play a crucial role in improving the socio-economic conditions of the rural population in India. Indeed, WTO legislation has a direct or indirect impact on the Indian economy. With the advent of the WTO, india`s economy has changed enormously. The WTO agreement on agriculture has a major impact on Indian agriculture, which India has really felt on several occasions. The competent agricultural markets (CAM) were not correct. Agricultural exports were dominated by a small number of large MNCs and trade agents. Low-priced imports have often hit Indian markets and caused shockwaves among agricultural producers. The subsequent effects of WTO policy have been undemocratic due to the lack of transparency in the negotiations.

There are also other factors of low productivity in India. With the exception of the rice market, India is a negligible force in the global market. The WTO has 153 members, about two-thirds of whom are developing countries. Differences and specific treatment make it possible for developed countries to treat developing countries more favourably than other WTO members. Developing countries face a number of challenges in managing the trade regime. They are: compliance with obligations under WTO agreements that require legal and administrative reforms; capacity building to raise concerns and compromises during the negotiations; adaptation and mitigation measures to mitigate the negative effects of globalization; and reducing the size of the political space due to global commitments. They are aware that they did not carry out the preparatory work during the negotiation phase. They hesitated with the GATS and the TRIPS agreement, but accepted them because all the agreements were a “one company.” In addition, they recognize that the process of globalization is biased (greater mobility of goods and capital and less labour mobility) and that most of the S-DT provisions are not mandatory.

At the Doha Ministerial Conference (2001), efforts were made to integrate development issues into the new round of trade negotiations. The TRIPS agreement has been a controversial topic for developing countries because it concerns the structure and operation of the pharmaceutical industry, which has serious implications for health care. Initiatives by Brazil, India and South Africa led to the adoption of a declaration on TRIPS and public health at the WTO Ministerial Conference in 2001. This declaration recognizes the right of priority of the right of countries to issue compulsory licences and the freedom to determine the reasons for issuing such licences, as well as the right to determine what constitutes a national emergency or other circumstances of extreme urgency for the implementation of the agreement on TRIPS. The World Trade Organization (WTO) was established on 1 January 1995 to promote world trade. Multilateral trade agreements include the 1994 General Agreement on Tariffs and Trade (GATT) and related agreements; General Agreement on Trade in Services (GATS); And Trade-Related Intellectual Property Rights (TRIPS). In addition to these agreements, Schedules 1 and 2 concern the dispute settlement mechanism and Schedule 3 the trade policy mechanism. It should be noted that these three annexes are part of a “single business” approach. The basic principles of the regime are: the most favoured countries (all countries should be treated in the same way); domestic treatment (equal treatment between foreigners and indigenous peoples); freer trade (reducing tariffs and removing non-tariff barriers). The World Trade Organization was established in 1995 as an organization that succeeded the General Agreement on Tariffs and Trade (GATT), created at the