23 Jan 2025 Indian Express Editorial


What to Read in The Hindu Editorial( Topic and Syllabus wise)

Editorial 1 : Reform With Consent

Context: Agricultural reforms must have the farmers’ consent

 

Background

  • The current farmer agitation follows the successful 2020–2021 (Samyukta Kisan Morcha) SKM-led protests that resulted in the repeal of the three contentious farm laws.
  • The current agitation is led by Jagjit Singh Dallewal.
    1. Dallewal started a hunger strike in November 2024, coinciding with the rollout of the National Policy Framework on agricultural marketing, perceived as a backdoor attempt to reintroduce the repealed farm laws.
    2. The fast ended on January 14, 2025, after Dallewal accepted the central government’s offer for talks.

 

Involvement of Various Groups

  • Bharatiya Kisan Union (BKU) (Sidhupur) and Kisan Mazdoor Sangharsh Committee (KMSC) have been central to the agitation, while the original SKM remains aloof.
  • Differences between the SKM and newer groups like SKM (non-political) have created challenges in achieving unity.
  • Recent unity talks culminated in the SKM announcing a nationwide tractor march on January 26, 2025.

 

Demands of the Protesters

  • 13-Point Charter of Demands (it includes)
    1. Legal Guarantee of MSP: Based on the Swaminathan Panel’s formula.
    2. Farm Loan Waiver: Total exemption of outstanding debts.
    3. Monthly Pension: Rs. 10,000 for farmers above 60 years of age.
    4. WTO Withdrawal: India to exit agreements detrimental to farmers.
  • Debate on MSP
    1. Supporters’ View: Legal MSP guarantees fair remuneration, encouraging crop diversification.
    2. Critics’ View
      • May result in a quota-based procurement system, restricting the purchase of wheat and paddy.
      • Could adversely affect Punjab’s agrarian economy.

 

Challenges and Divisions

  • Public Perception
    1. Unlike the earlier SKM-led agitation, this protest has struggled to gain widespread urban support.
    2. The December 30 bandh faced resistance from traders, indicating limited backing outside rural areas.
  • Role of Women: Women, a pivotal force in the earlier SKM protests, have played a minimal role this time.
  • Political Undercurrents
    1. Farmers’ unions accuse political forces of exploiting their cause.
    2. Successive governments have failed to implement crop diversification despite repeated promises.

 

Structural Issues in Punjab's Agriculture

  • Overdependence on Paddy
    1. Punjab’s agriculture remains reliant on water-intensive paddy, leading to ecological strain.
    2. Lack of investment in cold chains, food processing units, and Farmer Producer Organisations (FPOs).
  • Stubble Burning: The annual issue of stubble burning continues, with no viable alternatives provided to farmers.

 

Way Forward and Conclusion

  • Talks scheduled for February 14 aim to address the farmers’ demands, especially the MSP guarantee.

Conclusion: Need for Agricultural Reforms – All stakeholders agree on the need for reforms, but farmers’ consent is critical to ensuring successful implementation.

 

Editorial 2 : Doing Business with Trump

Context: How India can do business with Trump’s America

 

Introduction: “Golden Age of America” under Trump

  • President Donald Trump’s leadership ushered in an aggressive "America First" trade policy aimed at reducing the US trade deficit.
  • China, Mexico, and Canada were initially the focus, but space for dialogue and adjustment was left open.
  • India’s position in US trade is significant but not central, ranking ninth with a trade surplus of $33 billion.

 

US Trade Deficit

  • Total deficit: $1.05 trillion.
  • Top contributors:
    1. China: 30% ($318 billion).
    2. Mexico: 19%.
    3. EU: 16%.
    4. Canada: 15%.
  • India: 3.2% share, with a surplus of $33 billion.

 

Sectoral Trade Analysis with India

  • Primary Goods: Imports of primary goods from the US stand at $13 billion, while exports are at less than a billion.
  • Consumption Goods: India’s imports stand at $2 billion while exports are at $27 billion.
  • Capital Goods: US exports capital goods worth $6 billion while its imports from India stand at $8 billion.

 

Emerging Trade Strategies and Challenges

  • US Quadrennial Supply Chain Review 2023
    1. Focus on countering Non-Market Policies and Practices (NMPP) of China.
    2. Highlights traceability in trade to address third-party targeting of the US economy.
    3. Recommendations
      • Amendments to Article 301 and Article 201 for stronger circumvention procedures.
      • Pooling resources of Treasury, Commerce, and Homeland Security for external revenue management.
  • Potential Implications for India
    1. Risk of dumping in Indian markets due to China-US trade war.
    2. Indian exports, especially to Africa, may face challenges due to production shifts in China.

 

Services Sector and the H-1B Visa Issue

  • India’s Position: India has a dominant position in the US services sector, relying heavily on H-1B visas.
    1. 72% of H-1B visas are granted to Indians (compared to 12% for China).
  • Challenges
    1. Outdated service delivery models, with limited future benefits from traditional BPO setups.
    2. Emerging restrictions on fields like synthetic biology and AI.
  • Indian Government's Efforts
    1. Simplification of the H-1B visa process.
    2. Advocacy for an increased student quota to strengthen educational and professional ties.

 

Indo-Pacific Economic Framework for Prosperity (IPEF)

  • India has agreed to three verticals in the IPEF:
    1. Supply chains
    2. Clean energy, decarbonisation, and infrastructure
    3. Tax and anti-corruption
  • This paves the way for a calibrated free trade agreement with the US.
  • Supply chain stability has been identified as a priority by the Trump administration.

 

Way Forward: Opportunities for Strengthening India-US Trade Relations

  • Cross-Sectoral Collaboration
    1. Trade relations should integrate investment, technology, and finance for a comprehensive partnership.
    2. Establishment of institutional mechanisms at the highest level for ensuring convergence across sectors and addressing trade-related challenges proactively.
  • Diversification and Preparedness
    1. India must prepare for trade relations beyond the US, especially in the Indo-Pacific.
    2. Greater focus on professional services, MRO services, and emerging technology sectors to reduce over-reliance on traditional services.

 

Conclusion

The India-US partnership should be viewed in a comprehensive manner, bringing in the cross-sectoral and cross-modality connections across trade, investment, technology and finance. It will require new institutional mechanisms at the highest level for effective and timely delivery.