The last century witnessed two important changes in the Indian economy. They were the new economic policy of 1991 and the subsequent decision of India to join the WTO in 1995. Internally, the new economic policy has affected the growth potentiality of all the sectors and the sub-sectors and externally WTO and its agreements are trying to create an environment of free and fair trade in a multilateral trading system. This will help in the growth of foreign trade and will benefit the growth of the economy. Indian economy in the last decade of the last century has been designed to operate in a liberalized and globalized environment. The WTO added on to the impacts of liberalization and globalization of the economy. The Indian farm sector, besides other sectors of the economy can also benefit from the opportunities of the foreign trade in the post-WTO era but the bottlenecks are restricting its optimization. This article briefly tries to understand the opportunities of foreign trade in farm products and the bottlenecks in its path.

Indian economy in the current fiscal is full of excitement and enthusiasm. The excitement was visible when it achieved an overall GDP growth of 9.4% during 2006-07 as against 9.0% during 2005-06. Various sectors of the economy also did reasonably well as industry grew by 10.9% higher as compared to 9.6% in 2005-06, services grew by 11.0% again higher than previous year's growth of 9.8%. But the farm sector growth dropped to touch 2.7% in 2006-07 as against the good achievement of 6.0% of 2005-06.

Despite the decline in the growth of the farm sector, the Indian economy managed to cross the 9% GDP growth target during 2006-07, being driven by the industry and service sectors. The Indian success story is becoming more illustrious with rising foreign exchange reserves, record-breaking Sensex, increased inflow of FDI and FIIs, and growing private sector participation.

India's success story is being witnessed everywhere, from manufacturing to services sector. The success can be attributed to the hurricane reformative measures that took place in 1991. The unwarranted controls and restrictions were removed from the economy and allowed to operate on optimum.

Treasury Management Magazine , World Trade Organization, WTO, Indian Farm Sector, Foreign Trade Companies, Global Economy, Indian Economy, Gross Domestic Products, GDP, Multilateral Trading System, Economic Policy, General Agreement on Trade and Tariff, GATT, Decision-Making Process, Foreign Exchange Markets, Indian Industrial and Services Sector.