India’s $48 Billion Input Subsidy
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India’s $48 billion input subsidy for power and agriculture has raised concerns among several WTO members, including the US and EU. The subsidies, aimed at supporting low-income farmers, are defended by India citing inflation and rising fertilizer costs. WTO rules allow developing countries more flexibility in providing such subsidies. The Aggregate Measurement of Support (AMS) is a WTO mechanism to limit trade-distorting agricultural support, with higher limits for developing countries.