Agriculture accounts for about One-quarter of the Gross Domestic Product (GDP) of India and employs about two-thirds of its workforce. Agricultural Performance witnessed a dip in the 1990s partly on account of subdued public investment in agriculture and inadequate diversification. The decline public investment was only partially compensated by the rise in private investment. With the WTO regulations coming into force in phases, it is time that our agricultural sector gears up to face the competition from other emerging and developed economies of the world. The Government has initiated few steps and revitalized policies which should give thrust to agricultural production in the country and induce export competitiveness of our agricultural products. India can continue with all its developmental schemes under the WTO Agreement on Agriculture. These include our subsidies for research, pest and disease control marketing and promotion services, infrastructural services, including capital expenditure for electricity, roads and other means of transport, marketing and port facilities, irrigation facilities, drainage systems and darns etc. For developing countries like India, there are some agricultural subsidies, which are also permissible and need not be reduced. These are investment subsidies that are generally available to low income and resource poor farmers. The types of subsidies mentioned above account for the bulk of the agricultural subsidies provided in India. The need for liberalization in the world trade in agriculture was felt due to extensive subsidization by the developed countries, which led to distortion in the prices of agricultural commodities. As a result, the poor and developing countries like India were finding it difficult to have access to the markets of agricultural products in the developed and developing countries. Agreement of Agriculture of WTO recognizes free and market-oriented trading system in agriculture.