Abstract
Issue of subsidy provided by the US government to its cotton production has been a bone of contention in the current Doha Round of WTO negotiations. C4 countries have alleged that the subsidy given by the US is hampering their prospects in world market as they are unable to compete with world prices. These countries are vociferously arguing that withdrawal of subsidy from cotton sector will be a welcome step for the growth of a free and fair world economy. However, this paper makes an attempt to examine the prospects of cotton production and exports between India and the US. It provides a comparative analysis by taking into consideration also the pricing factor. It shows India has become a top ten exporter in the world since 2005 and has a promising future in this sector. Similarly, exports of the US have increased. The paper further highlights that the demand of cotton in world market has not decline.
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