Social Science (087) — AI-generated practice question

WTO and Agricultural Subsidies:
WTO, started at the initiative of developed countries, aims to liberalise international trade. However, in practice, developed countries have unfairly retained trade barriers while forcing developing nations to remove theirs. US farmers, for example, receive massive government subsidies, allowing them to sell farm products at abnormally low prices in global markets. This harms farmers in developing countries like India, where agriculture employs a large share of the population. Developing countries thus face an unequal playing field — they open their markets while developed nations protect their own producers.

India's Post-Independence Trade Barriers:
After Independence, India put barriers on foreign trade and investment to protect domestic industries from foreign competition. Industries were just coming up in the 1950s–60s; unrestricted imports would have prevented them from developing. Only essential items like machinery and petroleum were allowed in.

Relevance Today:
This reasoning is partially relevant. Indian industry is now globally competitive, justifying liberalisation since 1991. However, small producers and farmers still need protection. The government can still use trade barriers selectively and negotiate fairer WTO rules to protect vulnerable sectors.

Source: Chapter 4 — Globalisation and the Indian Economy, sections on WTO, Liberalisation of Foreign Trade and Investment Policy, and The Struggle for a Fair Globalisation.

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• Agricultural subsidies point is the textbook's core example of WTO inequality — always cite US farmers receiving "massive sums" enabling abnormally low export prices.
• Post-Independence reasoning must mention protecting nascent industries from foreign competition — examiners look for this specific phrase/idea.
• Contemporary relevance should be balanced: acknowledge liberalisation was needed post-1991 but note small producers/farmers still need support — this shows higher-order thinking CBSE rewards in 5-mark answers.
• Keep the WTO paragraph, the historical reasoning paragraph, and the assessment clearly separated — examiners award marks part by part.