Wheat Farmers garner more than MSP in Markets

This year the wheat farmers may have overall gotten Rs. 5994 crore extra as compared to the MSP because they could sell at market prices. It’s heartening to know that crores of wheat farmers across the country benefitted significantly from the higher market rates during this crop season as majority of them sold their produce to the private traders at higher price in comparison to the Minimum Support Price (MSP). In this way, farmers reaped higher remuneration for their produce than MSP, as market system worked better for them. The prevailing geo-political situations also provided more options to farmers to sell their produce. It has been reported that during this season the farmers sold their produce at an average rate of Rs. 2150 per quintal in the open market. Accordingly, on the estimated procurement quantity of 444 lakh MT, the farmers may have earned around Rs. 95,460 crore at the rate of Rs. 2150 per quintal instead of Rs. 89,466 crores at the MSP of Rs. 2015 per quintal.

The market prices of wheat remained higher than the MSP throughout this procurement period across the country. The market prices were in the range of around Rs. 2100/- to 2500/ per quintal, which gave enough leeway to the farmers to earn higher. The downward trend in public procurement is attributed to the significantly higher purchase of wheat by private traders as wheat price in the international market shot up due to international demand-supply mismatch on account of prevailing geo-political situations. The MSP of wheat for Rabi Market Season (RMS) 2022-23 was also announced by the Government of India well in advance during the month of September 2021 with a hike of Rs. 40/-per quintal to Rs. 2015/per quintal from Rs. 1975/ per quintal earlier. The MSP of wheat has increased by around 49% to Rs. 2015/quintal in 2022-23, in comparison with Rs. 1350/quintal in 2013-14.

A transparent and uniform policy for procurement of wheat by FCI and state government agencies has helped this. Because if any farmer gets better price in comparison to MSP, he is free to sell his produce in the open market. Inspired by the conducive policies of the government, this year, farmers in greater number in major wheat procuring states in the country with substantial contribution to public procurement like Punjab, Haryana, Madhya Pradesh, Uttar Pradesh and Rajasthan, preferred to sell major part of their produce to the market.

The MSP of 22 mandated agricultural crops is announced by the Government of India at the beginning of the sowing season of crops to ensure remunerative price of the produce to farmers. MSP is finalized on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), which is determined considering important factors like cost of production, overall demand-supply conditions, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of economy, besides ensuring rational utilization of land, water and other production resources and a minimum of 50% as the margin over cost of production.

Paving the way for Co-Operative Development

The financial co-operative institutions, which trace back their origins to the 19th century, were established across jurisdictions with the objective of extending loans at affordable prices to the unbanked population. Amongst such institutions, the services of credit unions are exclusive for their members, who share a common profession, entrepreneurship interests or location. In contrast, co-operative banks offer services to non-members as well. There is immense potential for development and empowerment of farmers, agriculture and rural areas of the country in the cooperative sector, spurring the government agencies to take many unprecedented decisions to empower the sector with the mantra of ‘Sahakar Se Samriddhi’. In just around a year of its existence, many old demands and problems of the cooperative sector have been resolved by the new Ministry of Cooperation.

The rural co-operative credit system in India is primarily mandated to ensure flow of credit to the agriculture sector. It comprises short-term and long-term co-operative credit structures. The short-term co-operative credit structure operates with a three-tier system – Primary Agricultural Credit Societies (PACS) at the village level, Central Cooperative Banks (CCBs) at the district level and State Cooperative Banks (StCBs) at the State level. PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by the Reserve Bank of India. During last one year, RBI has taken important steps to increase credit flow through cooperative banks, announcing three very important policy decisions for the sector.

Firstly, the limit of individual housing loan has been doubled for Urban Co-operative Banks and more than doubled for Rural Co-operative Banks. With this decision, the individual housing loan limit for tier-1 Urban Cooperative Banks (UCBs) has now been increased from ₹30 lakh to ₹60 lakh, for tier-2 UCB from ₹70 lakh to ₹1.40 crore, and for Rural Cooperative Banks (RCBs) these have been increased from ₹20 lakhs and ₹30 lakhs to ₹50 lakhs and ₹75 lakhs respectively. In another major decision, RCBs have been allowed to lend to Commercial Real Estate Residential Housing sector, which will increase the scope of our Rural Co-operative Banks and also give impetus to the resolution of providing affordable houses to the people, facilitating better flow of credit to the housing sector, which caters to the needs of lakhs of people especially from the middle class. In the third major decision, now UCBs will be allowed to provide door step banking facility to their customers like commercial banks.

These decisions have given new impetus to the development of the cooperative sector. The increase in credit flow to the housing sector through co-operative banks will lead to an increase in economic activity, increase in capital formation and employment generation, which will have a multiplier effect on the economy. Now, with these changes made by the RBI, cooperative banks will also get a level playing field in the competitive banking sector. Now one can say that co-operative model can be emulated in various other sectors with a continuous push from the government for boosting the economy of the country.

Future-proofing Pharmacy of the World

The world witnessed India’s quest to combat COVID-19 not just strategically, economically, socially and with regard to health provisions and hospitality, but also bio-technologically as it came up with many successful vaccines. This is no mean feat for a country which had been considered very poor in the domain of research, especially bio-technology and medicine. Now, it seems it is a different world out here. Today, PM Narendra Modi inaugurated the two-day Bio-Tech Startup Expo 2022 being held in New Delhi. Further, India recently saw inauguration of the National Facility for Gene Function in Health and Disease (NFGFHD) in Pune. In Parallel, North India’s first biotech park was inaugurated in J&K’s Kathua along with the launch of a Single National Portal For Biotech Startups by Union Minister of State For Science and Technology Dr. Jitendra Singh. In a recent development, IISC scientists have also designed a new class of artificial peptides or miniproteins that they say can render viruses like SARS-CoV-2 inactive. With such a motivated and encouraging developments, India is beaming with bio-technological breakthroughs, slowly forming a favorable ecosystem for both research and innovation in the country.

Prospects are galore for the sector as it is one of the most demand driven sectors. The campaigns for ease of living in India over the years, have opened up new possibilities for the biotech sector. The developments in health, agriculture, energy, natural farming, bio-fortified seeds are creating new avenues for it. However, we still need to work on the efficiency and productivity and cost-effectiveness of agriculture, nutritional security, molecular medicine, environmentally sustainable technologies, scientific and technological empowerment of human resource, a strong infrastructure for research and commercialization, the relevant knowledge base, nurturing the leads of potential utility and bringing the bio-products to the market place to take the sector to new heights.

Five big reasons why India is being considered a land of opportunities in the field of biotech are- its diverse population and diverse climatic zones, talented human capital pool, increasing efforts for ease of doing business, the demand for bio-products and the track record of its success. Furthermore, to transcend government-centric approach, the Centre is encouraging a culture of providing new enabling interfaces. Platforms like BIRAC are being strengthened. The government, through new institutions, is bringing together the best minds of the industry on a single platform. Trust in the skill and innovation of India’s IT professionals in the world is at new heights. The country gets new breakthroughs from research and academia, with the industry helping in what is a real world view and the government providing the necessary policy environment and necessary infrastructure.

The encouraging initiatives being continuously taken by India for the sector, has manifested in creating robust startup ecosystem in biotech sector also. In the last 8 years, the number of biotech start-ups in the country has increased to more than five thousand. While, the total number of startups of all kinds, has risen to 70 thousand from a few hundreds in last 8 years (operating in about 60 different industries). This way every 14th startup operates in the bio technology sector with more than 1100 such biotech startups emerging last year itself. The shift of talent towards the sector induces a great deal of investment, resulting in the number of investors being risen by 9 times and biotech incubators and funding for them being increased by 7 times. The number of biotech incubators has increased from 6 in 2014 to 75 now. Biotech products have also increased from 10 to more than 700 today.

A frontline area of science with immense potential for the benefit of the human kind, biotechnology sector is helping to heal the world by harnessing nature’s unfathomable potential and people’s very complex genetic makeup. By reducing rates of infectious disease, it is saving millions of lives and changing the odds of life-threatening conditions by tailoring treatments to minimize the health risks and side effects by creating more precise tools. These are the reasons why India’s bio-economy has grown 8 times in the last 8 years and from 10 billion dollar to 80 billion dollar. More importantly, India is not too far from reaching the league of top-10 countries in Biotech’s global ecosystem.

Managing Inflation – Handling Global Troubles Locally

NRIs report price of gas in Bay Area spiking from around $1.3/gallon in March this year to current rate of around $6/gallon. The lingering conflict between Russia and Ukraine has thrown nagging challenges which accentuate the existing supply chain disruptions, causing food, energy and commodity prices being elevated, inflation to hit decadal highs and persistence of demand-supply imbalances. This globalisation of inflation makes it mandatory for the central banks across the globe to reorient and recaliberate their monetary policies. Emerging market economies are facing even bigger challenges from increased market turbulence, monetary policy shifts in advanced economies and their spillover effects, which slow the process of economic recovery in emerging economies like India as is seen by the GDP growth forecasts of World Bank, Moody’s Investors Service, S&P Global Ratings, Fitch, IMF, ADB and RBI.

The protracted conflict in Europe and the accompanying sanctions being increasingly imposed by the western world have kept global commodity prices elevated across the board, exerting sustained upward pressure on consumer price inflation, well beyond the targets in many economies. The ongoing conflict is also turning out to be a dampener for global trade and growth. The steps taken by the advanced economies are also leading to heightened volatility in global financial markets, causing corrections in major equity markets, sizeable swings in sovereign bond yields, US dollar appreciation, capital outflows from emerging markets like India. Globally, stagflation concerns are also growing, which also spurs volatility in global financial markets.

Navigating through difficult times makes it necessary to be sensitive to the new realities and incorporate them into thinking and actions. After much debate and discussions over all possible dimensions of macroeconomic situations and newer challenges being thrown upon by different geo-political and economic happenings globally, today the RBI took a unanimous decision to increase the policy repo rate by 50 basis points to 4.90% with immediate effect. Inflationary pressures going much beyond the upper tolerance level- a gradual, orderly and calibrated rise in repo rates, is something that the RBI is required to take account of, without losing sight of the growth requirements and disturbing macroeconomic stability. However, despite these challenging times, the Indian economy has remained resilient, ably supported by strong macroeconomic fundamentals and buffers. The recovery has gained momentum despite the pandemic and the conflict in Europe.

As the RBI is of the opinion that inflation is likely to remain above the upper tolerance band of 6% through the first three quarters of 2022-23. The reduction in excise duties on petrol and diesel will certainly help in mitigating the inflationary pressures to some extent, however further monetary policy measures appeared necessary to anchor the inflation expectations. According to the provisional estimates released by the NSO on May 31, 2022, India’s real GDP growth in 2021-22 is estimated at 8.7%. The level of real GDP in 2021-22 has exceeded the pre-pandemic (2019-20) level. The recovery in domestic economic activity also remains firm, with growth impulses getting increasingly broad-based. Manufacturing and services PMIs for May point towards further expansion of activity, corroborated by encouraging movements in railway freight and port traffic, domestic air traffic, GST collections, steel consumption, cement production and bank credit. While urban demand is recovering, rural demand is also gradually improving. The contact-intensive services related to trade, hotels and transport have also recovered substantially. Capacity utilisation in the manufacturing sector increased further to 74.5% in the fourth quarter of 2021-22, which is likely to increase further in 2022-23, which is sure to spur the investment activities. Government’s capex push, pick-up in bank credit, persisting growth in imports of capital goods, buoyancy in merchandise exports with double digit growth for the fifteenth successive month in May and high growth of non-oil and non-gold imports are the indications of a sustained recovery in the Indian economy. Hence, there appears no trouble even when RBI raises repo rates in a calibrated fashion.

Tribal Research for Conservation and Meaningful Development

India has established ‘National Tribal Research Institute (NTRI) in Delhi to focus on the development of tribes and conservation of their art, culture and heritage. The newly built institute is positioned as to become the nerve centre of tribal research issues and matters in academic, executive and legislative fields as around 10.4 crores tribals living in different parts of the country love their art, craft and cultural threads to be preserved and promoted. Scheduled Tribes (ST) constituting approximately 8.6% of the population of India, also have very close relations with nature and forest geography of the country and may provide great insights.

Realising the importance, the Government of India has recently, focused much on the development of tribes and conservation of their heritage and culture as a priority. The Ministry of Tribal Affairs in line with this vision and its enduring commitment for welfare of tribals, geared itself to ensure sectoral development through enhanced allocation of financial resources, convergence of efforts, re-engineering of planning and implementation mechanism of the Ministry. With an enhanced availability of resources the Ministry is now charting out a new progress path with greater commitment to ensure holistic development of tribal communities. Presently, Tribal Research Institute (TRI) is the research body of the Ministry of Tribal Affairs at the state level, however it focuses more on gathering knowledge and research and less as a think tank for tribal development and preservation of tribal cultural heritage.

NTRI and similar institutions of national eminence have a great role in nation-building as collaboration and networking with reputed research institutes, universities, organizations, academic bodies and resource Centres is essential to further the cause effectively. Monitoring projects of tribal research institutes, centres of excellence and research scholars of NFS and setting up the norms for improvement in the quality of research and training, will pave the way for better understanding of socio-cultural dynamics of the society, history, nature and geography, as tribals are widely considered to be the original inhabitants of the land.

The new institute would also provide policy inputs to the Ministry of Tribal Affairs as well as state welfare departments, design studies and programs that improve or support socio-economic aspects of tribal lifestyles and help in creating and maintaining the database of PMAAGY. It will also provide guidelines in setting and running of tribal museums and showcasing rich tribal cultural heritage of India under one umbrella.

In recent years, tribal artisans, tribal produce and tribal dance troupes have attracted attention as they are invited to showcase their indigenous products and performances across the country. The scheme of Mechanism for Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and Development of Value Chain for MFP covers various activities. Hence, expanding knowledge base about tribals, their art, culture, heritage and produce is the need of the hour.

Harnessing Digital Strength for Credit Delivery

Launch of recent digital platforms by the government like DigiLocker, eNAM (e-trading platform for the National Agriculture Market), AI-driven research portal SUPACE (Supreme Court Portal for Assistance in Courts Efficiency), CoWIN platform, National Single Window Platform, etc. which have worked wonders as far as information delivery, public use, notice circulations, availing services, bookings and record-keeping, etc, is concerned. These have also become a means of transparency and accessibility and even grievance addressal in some cases. The National Data & Analytics Platform (NDAP) that was launched by NITI Aayog for free public use recently, ensures the same. It makes data accessible, interoperable, interactive, and available on a user-friendly platform, which intends to democratise access to public government data. ‘Jan Samarth’ portal is yet another skyrocketing idea of the Government to cut the clutter and establish a direct connect with public.

Launching of the national portal for credit linked government schemes – ‘Jan Samarth’, may prove to be a game changer for the economy, as it gives a big boost to the inclusive growth and development of various sectors by guiding and providing the beneficiaries with the right type of government benefits through simple and easy digital processes. It promises to improve the ease of living for those who presently have to face much hassle in the lending process. In absence of human interventions in the approval – red tap, human eccentricities and corruption would cease to exist in the process, paving way for a transparent setup, greater growth of the economy and judicious and rational utilization of the human resources.

Being first of its kind platform, ‘Jan Samarth’ is a one stop digital portal linking government credit schemes, which directly connects beneficiaries to lenders. The portal ensures end to end coverage of all the linked schemes by bringing all kinds of government schemes on a single platform, making them easily accessible for the people and without much puzzle. The portal is a universal platform for delivery of various schemes being run by the various ministries and departments of the government. Working on the ideals of minimum government maximum governance, this nationwide portal plans to initially onboard 13 credit linked government schemes and the offerings will gradually be expanded, which will depend on compatibility, since a few Centre sponsored welfare and credit linked schemes involve multiple government departments/agencies/ministries.

The portal uses smart analytics and technologies that provide guidance to beneficiaries for checking subsidy, eligibility and the auto recommendation system that recommends the suitable schemes as per the requirements and credentials of the beneficiaries. The entire lending process is automated and based on digital verifications to make it simple, speedy, and hassle-free. Being integrated with the governments’ Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the new portal helps in receiving in-principal approval of loans for MSMEs and after receiving in-approval, the loan is expected to be disbursed in a few days as the loan application process doesn’t have any human interventions, rather it depends on advanced algorithms to analyse data points from sources like income tax return, GST data, banks accounts among others.

Jan Samarth Portal has multiple integrations with UIDAI, CBDT, NSDL, LGD and other such organisations to make the processes smooth for both beneficiaries and lenders. It does enable beneficiaries to choose from multiple options being offered by various lending financial institutions on the portal. Presently, the platform has more than 10 nodal agencies and over 125 lenders with four broad loan categories – education, business, livelihood and agriculture related infrastructure loan. To avail the loan, beneficiaries first need to check their eligibility by providing answers to few simple questions under the selected loan category. When found eligible, they can proceed to provide the required details and documents. Upon submitting the details, people are recommended to select the schemes based on their needs and then they need to proceed to apply online for the selected scheme to receive digital approval.

India’s 5 prong action to save soil

‘Save Soil’ is turning into a global movement. Projected data due to loss of biodiversity, poor top soil linked food shortage and malnutrition is very scary. It is an urgent requirement for leaders of the world to rejuvenate 15-20inches of top soil of the planet. In this context, as Prime Minister Narendra Modi addressed the nation on the occasion of the World Environment Day, he also stressed on the efforts that have been taken in last few years in order to rejuvenate the soil of India. PM Modi conveyed that to save the soil, the government has focused on five main things. First- How to make the soil chemical free. Second- How to save the organisms that live in the soil, which are called Soil Organic Matter in technical language. Third- How to maintain soil moisture, how to increase the availability of water till it. Fourth- How to remove the damage that is happening to the soil due to less groundwater. And fifth, how to stop the continuous erosion of soil due to the reduction of forests.

All these five focal points have helped in health retention of soil through innovative schemes and initiatives which are based on collaboration, education and mordernisation. In 2015, the government launched the Soil Health Card, which is a printed report that is extended to the farmers for all their land or holdings. The card provides every farmer with soil nutrient status of his land and teaches him accordingly about the dosage of fertilizers and essential soil amendments that should be maintained for good soil health. Government also employs experts to help the farmers in carrying out the corrective measures. Thanks to this scheme, many Indian farmers now get a proper soil health record which assists them to undertake planned cultivation and largely prevents risks of crop failure that used to be very common before. So far, a total of 22,71,21,456 Soil Health Cards were issued to farmers between 2015-2019 across the country, whereas 11,531 new soil testing labs (491 static, 107 mobile, 8811 minilabs and 2122 village level labs) and strengthening of 829 labs have been sanctioned to the states. The massive success is indicated in the fact that since 2015, around 6.04 lakh demonstrations, 36,928 farmers’ trainings and 7,425 farmers’ melas have been organized/conducted under the programme. Village level rural development workers like Krishi Sakhis, Pasu Sakhis are even involved in educating farmers on right use of fertilizers.

The government has also been endorsing organic farming and use of Nano fertilizers that play a vital role in enhancing the efficiency of nutrients and in reducing soil contamination. The concept of ‘Low cost organic farming’ under the Schemes Parampragat Krishi Vikas Yojana (PKVY) & Mission Organic Value Chain Development for North Eastern Region (MOVCDNER), is also being promoted for quite some time. Apart from financial support, capacity-building for organic farming through trainings and seminars / awareness camps has been integral part of these schemes. For maintaining soil moisture, mega promotion of intiatives like PM Krishi Sinchayi Yojana, ‘Per drop more Crop’ campaign, etc. have worked wonders. Mass awareness through these has resulted in increasing water use efficiency at the farm level through Micro Irrigation technologies, i.e., drip and sprinkler irrigation systems. Use of drones for irrigation and controlled fertilizer spray is a recent addition in the newfound efforts to preserve soil nutrients and maintaining balance.

Lastly, for controlling continuous erosion of soil due to the reduction of forests, the government has rolled out strict initiatives to educate people and motivate them to go green. Some heartfelt initiatives also include the ‘Har Med Par Ped’ scheme to encourage tree plantation on farm land along with crops/ cropping system to help the farmers get additional income and make their farming systems more climate resilient and adaptive. Further, while National Afforestation Programme (NAP) is being implemented for afforestation of degraded forest lands, Green India Mission (GIM) aims at improving the quality of forest and increase in forest cover besides cross sectoral activities on landscape basis. In order to reclaim and develop barren lands, several location specific bio-engineering measures have also been developed to check soil erosion due to run-off of rain water. Concerned Indian Institutes have also developed reclamation technology, sub-surface drainage, bio-drainage, agroforestry interventions and salt tolerant crop varieties, etc. to improve the productivity of saline, sodic and waterlogged soils in the country.

India is all for mutual respect

India is a torch bearer for modern times, and given its rich heritage, ancient and modern history, it’s story is crucial for sustainable, peaceful and prosperous future of the planet. For context, France became part of EU more or less from an Empire status, and USA, though an old state, became true democracy only around 60 years back. As Indian democracy is celebrating ‘azaadi ka amrit mahotsav’, EAM makes it very clear that it will not tolerate unnecessary grandstanding.

Addressing the Globsec 2022 Bratislavia Forum, External Affairs Minister Dr. S Jaishankar lambasted the West’s over its glaring hypocrisy on Russian oil imports by India. Referring to the new sanctions, designed to cause minimal or no harm to its population, EAM said, “Europe is buying gas. New packages of sanctions are designed where consideration has been given… timeline is there…not like everything will be cut off instantly…people need to understand if they can be considerate to themselves, surely you can be considerate to others. So if Europe says we have to manage it in a way that the impact on our economy is not traumatic, that freedom or choice should exist for other people as well.” He added, “Tell me buying Russian gas is not funding the war? Why, it’s only Indian money, oil coming to India which funds and not gas coming to Europe which funds.”

The 20th century had started with civil unrest and resourcelessness and political tensions loomed over states across the globe for more than five decades. The entire century was dominated by massively disturbing events like two world wars, nuclear attacks, crisis like Spanish Flu & great depression, Cold War and then the post-Cold War conflicts. A politically super-charged world order was met with the concept of “non-alignment” in the aftermath of the Korean War, an idea that persisted even till the Cold War time. For India, the concept of non-alignment began as a policy of non-participation in the military affairs of the then highly-bipolar world. It meant a country should be able to preserve a certain amount of freedom of action internationally. The ripple effects of such a stance would not be recorded anywhere, would go unseen and unacknowledged and eventually get lost in the mists of time. But if this notion wasn’t strong enough, the world wouldn’t have come to a stage where for once, it took a stop. It wasn’t until the last two decades of the century that many states took a break from choosing sides externally and shifted their focus on internal matters & development. Progressive trends like globalisation, cultural exchange, trade pacts, privatisation, technological breakthroughs, space exploration, decolonisation began to bring positive change across the globe.

This led to a much evolved and mature global setting and a highly inter-connected world order with trade, technology, peace and security acquired the center stage. The focus beautifully shifted to revival of economies, preservation of culture and establishment of healthy bilateral relations across the globe, slowly laying foundations of ‘multilateralism’ for collective growth and sustainability. And this is exactly what the New India has learned, understood, is applying and endorsing for the whole world to see.

Yesterday, further hitting out on Europe on being silent on many key issues including India and China and the rule-based order in Afghanistan, EAM has said, “Somewhere Europe has to grow out of the mindset that Europe’s problems are the world’s problem but the world’s problems are not Europe’s problem. Come on guys, India and China happened way before anything happened in Ukraine”. He reckoned that the “world cannot be that Eurocentric that it used to be in the past”.

Further, speaking of India’s wheat ban decision, EAM said, “Our goodwill was used for global speculation and we had to do something. What we saw happen with vaccines, we don’t want to see happen with wheat.”

“Low-income countries, many of whom are traditional buyers like our neighbours Bangladesh, Sri Lanka, interestingly the Gulf, buy from us regularly. Yemen buys from us, Sudan buys from us, what we saw was low-income buyers were squeezed out, wheat was actually being stocked for being traded, so our goodwill was being used for speculation. We have to do something to stop that because it was also affecting us as home prices were going up,” EAM added.

Further responding to a question on India was allowing “trans-shipment of oil”, EAM asserted, “There’s an enormous shortage of oil, there’s a physical shortage of oil, getting access to oil is difficult. A country like India would be crazy to get oil from somebody and sell it to somebody else. This is nonsense.”

The 21st century is all about trade, technology and resource management. Few years back, the entire world experienced the tremors of the bad impacts of the US-China trade tussle. This was followed by COVID-19 Pandemic and then the Ukraine-Russia Crisis. These instances are clear indication that any deviation from the Path of ‘Sustainability, growth and Peace’ is going to lead the world towards damage and disruption. And this is exactly the message India has been trying to convey to the world and this is clear in the kind of global initiatives it has been taking up, in the kind of global collaborations and multilateral agreements it has been engaging in and in the kind of support and aid it has been extending to the world since the last 7-8 years. India understands the reality, potential and practicality of the century well and hence strongly stands for mutual respect.

Unprecedented Promises of Uttar Pradesh

Gautam Adani, Asia’s richest man, announced an investment of Rs 70,000 crore in Uttar Pradesh, promising 30,000 jobs. Attended by who’s who of the business world, the third UP investors’ summit saw Prime Minister laying foundation stone of 1406 projects worth more than Rs 80,000 crores on the occasion and investments accruing from a number of top business houses. The summit reflects the growing confidence in the remarkable growth story of Uttar Pradesh and is promising to create new possibilities in the state. India retaining the fastest growing country of the G20, further bolsters the confidence of the business community, promising huge investments in a state, which has huge potential, bolstered by much improved law and order situations and conducive business policies of the state government. The sectors inviting investments include agriculture and allied services, IT and Electronics, MSME, manufacturing, renewable energy, pharma, tourism, defence & aerospace, handloom and textiles among others.

The allocation of unprecedented capital expenditure of Rs 7.50 lakh crore in this budget of UP, presented just a few days earlier, is something, that gives out strong message to the investors, paving way for strong infrastructural and manufacturing growth among others. The confidence building law and order situation in the state has created a proper atmosphere for industry. The increased capability and potential of the administration and government of the state has helped a lot create a conducive atmosphere for the industries to invest. With 1100 KM of Ganga river covering 25-30 districts, UP creates huge opportunities for chemical-free natural farming corridor on both sides of the river, which may prove to be a golden opportunity to invest in the agriculture sector. Defence corridor in the state does have the potential to act as a harbinger of new opportunities.

The growth story of India continues with it being the third largest energy consumer country in the world, which reflects the growing economic activities in the country. In 2021, despite Covid-19 pandemic, India recorded FDI of $84 billion coming from more than 100 countries of the world along with creating a new record by exporting merchandise worth more than 30 lakh crore rupees, which helps a state with conducive business atmosphere. The mantra of ‘Reform-Perform-Transform’ for last 8 years lays the very foundation of policy stability, emphasis on coordination, effective execution and ease of doing business. Revolutionary initiatives like One Nation-One Tax GST, One Nation-One Grid, One Nation-One Mobility Card, One Nation-One Ration Card reinforce investors confidence, amply supported by the solid and clear policies of the state government. Steps like modern powergrid, gas pipeline, multi model connectivity, record number of expressways, strengthening of connectivity of economic zones, modern railway infrastructure, eastern and western dedicated freight corridor – all are converging in Uttar Pradesh with a promise to give a new push to its development.

It’s time for Indo-Africa

Indo-African relationship has historic importance and is set to define future for majority of world’s population. Dating back several centuries, the relations between India and African countries are driven and shaped by a number of factors, including trade and investments, cultural, historical and political engagements. A youthful demography, fast growing economies and vast amount of natural resources are something that both sides enjoy, causing envy and interest in rest of the world. Ongoing visit by the Vice President is the first-ever high level visit from India to Gabon and Senegal. This visit is set to add momentum to India’s engagement with Africa and emphasize India’s commitment to this continent as Africa is increasingly becoming important to India’s foreign policy calculations also.

Not only India, but rest of the globe is also far more interested in the African continent today than any time in history. India and Africa’s historical links and relations have experienced a revival in recent years and both sides understand the fact that it is a win-win situation as growing relations are mutually beneficial. India-Africa trade has grown to around 66.7 billion US dollar in 2019-20. Around 8% of Indian imports are from Africa and around 9% of Africa’s imports are from India. The investment of India’s public and private sector enterprises are increasing in Africa, making it the 8th largest investor in African. Besides loan and investment, India has also given ample amount of aid to Africa to fight the Covid-19 pandemic. Under the Vaccine Maitri initiative, India supplied 24.7 million doses of Made of India Covid vaccines to 42 countries in Africa.

India’s engagement with Africa focuses much on its core competencies like human resource development, training and skill development, IT, ITES, education and healthcare services which are very different to the Chinese approach, which focuses majorly on developing manufacturing capacities and infrastructure in Africa. While, China’s economic model of engagement with Africa looks attractive and has also paid rich dividend in recent years, the fascination for India’s support for democratic practices, processes, institutions and people to people engagement is high in Africa. India also has an advantage of language and cultural affinity. English is far more prevalent among the people in African countries than any other language, making it much easier for Indian to interact with African people. Moreover, over 3 million strong Indian diaspora in Africa also proves to a crucial strategic asset for India to further its relations with African countries.

Over half a dozen countries in Africa are among the fastest developing economies including Rwanda, Senegal, and Tanzania, making it one of the growth pole of the world. Real GDP in Africa in the past decade has grown almost twice. African continent has a population of over one billion with a combined GDP of 2.5 trillion dollars, which makes it a huge market. Taking these all things into account, India is making consistent efforts towards strengthening relations with Africa. India’s duty-free tariff preferential scheme has been beneficial for Least Developed African Nations. The India–Africa Forum Summit- the official platform for the African-Indian relations, is also contributing immensely to this building up the relationship process.