Profile
Settings
Refer your friends
Sign out
The Bhartiya Janata Party (BJP) promised in its manifesto before the Uttar Pradesh (UP) assembly elections that if it won, it would cancel farmers’ loans during its first cabinet meeting. BJP triumphed in Uttar Pradesh, and as promised, it has waived farm debts of up to INR100,000 for small and marginal farmers at its first cabinet meeting on April 4, 2017. The decision was projected to help around 21 million farmers. In addition, the cabinet resolved to write off INR56.30 billion in non-performing assets (NPAs) owed by around 700,000 farmers. For these two exemptions, the government would spend INR364.59 billion.
Banks must contribute 40% of their total loans and advances to the agriculture sector and related sectors under the priority sector lending plan. If banks are unable to lend in priority sectors, the leftover monies are placed in the National Bank for Agriculture sector and their reforms and Rural Development’s Research and Infrastructure Development Fund (RIDF) (NABARD).
Rebuilding trust and fostering a dialogue-friendly atmosphere
First and foremost, the central government’s desire to engage in communication with farmers is a positive move. Nevertheless, such consultation should have occurred before the ordinances were promulgated in June 2020 and then rushed through parliament in September, without the necessary, in-depth study and debate required by such laws. Mutual trust is essential for any productive discussion. However, recent attempts to divide the agricultural community based on who supports and opposes the legislation are not conducive to having an honest dialogue about the complex challenges plaguing Indian agriculture.
Then, after rounds of discussions with protesting farmers, the central government announced on December 9, 2020, a list of prospective amendments to the new agricultural legislation and the Electricity Act. The recommended changes to two of the three new agricultural laws’ key components (see Notes 1) indicate that the new laws in their current form may not have been required.
Furthermore, on 21 January 2021, the government offered to postpone the three pieces of legislation for 18 months, which the farmers declined.
Because these rules are structural, they cannot be implemented on the ground overnight. Over the previous 15 years, states had already begun to overhaul agricultural markets (Anand et al., 2020). As a result, if the government repeals these laws, nothing will be lost. A decision of this magnitude is likely to go a long way toward restoring mutual confidence and providing a favourable climate for conversation, all of which are required for any broadly accepted framework to develop.
Since this loan waiver is proclaimed by the state government rather than the federal government, either one will have to compensate the banks, causing the state government’s fiscal situation to worsen. Previous evidence implies that such payment from the state government did not arrive on time, aggravating the banks’ costs. The cost of the waiver and money lost due to other politically motivated regulations, such as the restriction of slaughterhouses, would eventually come back to haunt the state’s finances.
Returning to the agricultural sector, the piecemeal approach to loan waivers is not helpful in the long run. Instead, if the government gives free fertiliser, seeds, equipment, irrigation, and warehousing space, it will aid in increasing agricultural output.
Agriculture, which employs over 50 percent of the labour force, accounts for only 17 percent of GDP. As a result, by raising agricultural output, the government can improve the lives of around half of its labour force.
The importance of agriculture sector and their reforms in ushering in the New India cannot be overstated, and this can only be accomplished by increasing the rate of capital formation, reducing reliance on monsoon, land development, assured power supply (particularly during the sowing season), warehouse facilities, market access, and so on. Aside from that, the government should make an effort to develop jobs in other industries so that surplus agricultural labour may be shifted to other sectors.
The debt waiver can be an excellent political instrument for winning elections, but in the long term, it will fail to provide even political returns since the negative consequences will become too severe to overlook. Demands for similar waivers have already begun to pour in from other states, making it difficult for political parties to reject. Instead of guaranteeing loan forgiveness, the government might promise loan rescheduling.
Conclusion
True, the government must do something to reduce the growing number of farmer suicides, but the piecemeal method of loan waivers will have little effect. Most significantly, the government should strive for 100 percent financial inclusion so that farmers do not have to turn to private creditors who demand excessive interest rates. Then, a comprehensive approach is necessary to ensure a consistent supply of revenue to farmers. Crop failures are the most typical reason for farmers failing to repay their debts. As a result, the government must undertake measures to reduce crop failures and post-harvest losses and secure market access and a reasonable price for the output.
Prime Minister Narendra Modi visited Ireland on September 23, 2015. It was the second time an Indian Prime Minister had visited Ireland. The first being Jawaharlal Nehru’s visit in 1956. Ireland is an island nation located in Northwestern Europe and surrounded by the North Atlantic Ocean.
The Prime Minister of Ireland, Enda Kenny, had hosted PM Modi during his visit. The PM was attended by other dignitaries such as the Minister of Foreign Affairs and Trade, Charles Flanagan, and Ireland’s Ambassador to India, Feilim McLaughlin. The main aim of the visit was to create stronger ties and improve trade and cultural relations. Described below is the impact of the PM’s Ireland visit.
Impact on trade and commerce
India and Ireland have strong bilateral trade and business relations. Before the PM’s visit, trades with Ireland were valued at €650 million in business in 2014. This included exports worth €248m and imports worth €402 million.
The indigenous exports increased from €32 million in 2012 to €55 million in 2014. In 2019, the total bilateral trade was around €1.2 billion. The exports and the imports have also increased to €636 million and €480 million respectively. Currently, the total trade between India and Ireland is valued at €4.2 billion. This resulted from improved bilateral ties between the two nations, owing to Prime Minister Modi’s visit to Ireland.
Indian Companies in Ireland
Many Indian companies carry out trade and commerce in Ireland. They provide services to Irish markets and consumers across various industries. Pharmaceutical giants such as Reliance Genemedix and Amneal Pharmaceuticals operate in Ireland. Major IT companies such as Wipro, Infosys, TCS, and HCL also have a strong presence in the country. The trade relations were bolstered after Indian Prime Minister Narendra Modi visited Ireland.
Other companies like Crompton Greaves, Deepak Fasteners, Jain irrigation systems, and Shapoorji Pallonji provide consumer goods and services. Likewise, many Irish companies conduct their business in the Indian market. These companies include pharmaceutical and nutrition players like ICON and Glanbia, IT firms like Globoforce and other companies like Keventer, CRH Taxback Group, and Connolly Red Mills.
Impact on Education
Ireland has been a coveted destination for higher education for Indian students. Over 5000 Indian students have enrolled for higher studies in various institutions in Ireland. The students are admitted to engineering, technology, medicine and management colleges. More than 30 research agreements have been signed between the two nations that allow institutes in both countries to collaborate.
Many reputed institutes like Trinity College, Dublin, and Thapar University, Patiala, have signed MOUs for engineering and science disciplines programmes. Thus, Ireland is an essential collaborator in graduate and doctoral research. This collaboration is also considered an impact of the PM’s Ireland visit.
Indian Community in Ireland
Ireland is diplomatically significant for India also due to the large number of Indian citizens residing there. The Indian origin population is approximately 45,000 people, of whom 18,500 are Non-Resident Indians (NRI), and others are Persons of Indian Origin (PIO). The majority of the residents are working professionals employed in engineering, healthcare and management positions.
It has helped in establishing many policies for the Indian origin population. Two such policies in practice are wearing hijab as a part of the police uniform and the non-requirement of obtaining an additional work permit for the spouse or the partner of Critical Skill Employment Permit holders.
Cultural Impact
As a result of a large population of Indian origin citizens in Ireland and the relationship between the two nations, Ireland promotes Indian culture in various forms. One such example is the celebration of Diwali in Ireland since 2008. The event is organised every year in collaboration with Irish and Indian committees.
Further, an annual contemporary film festival is also a part of the celebration of Indian culture. The promotion of such events indicates the importance of cultural exchange between the two nations. The Irish communities also take a keen interest in conventional practices such as cultivating and consuming Indian herbs and spices. This connects the agricultural practices between the two nations. The cultural ties between the countries were strong, and Prime Minister Modi’s visit to Ireland helped strengthen them further.
Another significant practice is the celebration of International Yoga Day in Ireland. The Irish communities have accepted Yoga as a form of a healthy lifestyle. The practice is similar to the Indian tradition.
Tourism
India attracts around 44,000 Irish tourists every year. Indian tourists too visit Ireland in similar numbers. This was facilitated by the introduction of the common British-Irish visa scheme. This scheme allows the tourists to visit the U.K. and Ireland under one visa, rather than applying for two separate visas. It is valid for short stays. India also extended its Electronic Tourist Visa facility to Ireland to digitally facilitate visa approval and generation. The impact of the PM’s Ireland visit was such that it has also helped establish the tourism sector in both countries.
Conclusion
The diplomatic ties between Ireland and India have been impacted positively after Prime Minister Modi visited Ireland in 2015. It was an essential step toward strengthening the bilateral relationship between these two nations. India and Ireland have been important to each other since the 1900s.
In 2010 and 2017, two honorary consulates were established in Chennai and Kolkata. Later in 2019, a formal and fully functional consulate general in Mumbai. Ireland and India have also shown their allegiance to fighting terrorism after the Pulwama attack. India has also hosted several Irish dignitaries on various occasions. These visits were directed toward engagement in business, education, health and tourism.
Further, many agreements were signed to provide opportunities for employment to people of both countries. Prime Minister Modi’s visit to Ireland helped revive relatively stagnant relations between these two nations. Several cultural and historically similar instances bind these two nations. From Yeats and Tagore to cricket and Diwali, the cultural semblance between these two nations has helped create a strong tie between them.
