India's 3 Farm Laws provide a better environment for good trade of agricultural products and their derivatives. However as per experts, any such reform would not boost the market as the recession we face currently is solely due to lack of demand. Additionally, previous dip in demand for processed food is attributed to health consiousness and unaffordable price tags. GOI is struggling to convience farm bodies on issues presented. Forcing private players to register for trade would be a drawback. Tax on APMCs should be also be abolished. Government purchase quota announced before season begins. Better solution could be presented with introduction of private players within APMC premises and freedom for farmers to pick their own choice.
FTA i.e. Free Trade Agreement between countries is usually a sign of closeness between countries.Post-liberalisation India was one of the major countries to push FTA and bilateral ties to next level. However for long time India is lost in confusion of Populism vs Capitalism. Populism is not always good. Out of various FTAs India has signed till date, only 13 remain in force. With exports weakening, GOI is pushing for cut on exports essentially reversing the liberalisation move. India's Trade Volume may decrease in coming years leading to even bigger recession with weak currency. GOI should work for FTAs with European Union, Indonesia, Mexico, African Union, CANZUK. Among these African Union could become a bigger market for us than we are for the world.
With CAATSA, United States is on sanction spree. Recently, Turkey, a NATO ally has been sanctioned by US government for buying S400 Anti Missile Defence system from Russia. Turkey has refused to lend ears stating that S-400 is a lot better than US's own Patriot at a much better price tag. GOI has also signed pact with Russia for defence aircrafts and S-400 defense system amidst tensions with China. The pact has managed to get big bully US to "warn" India against execution of the deal. This defense deal is a big opportunity for India to gain ground against China. GOI has not released any statement officially yet. But America seems to be not so liberal about competition and wishes to maintain monopoly over the defense market at cost of world peace.
Recession in 2020 was inevitable. COVID -19 ruined lives and businesses. What is more important than admitting these statements is fixing them. A large section of population is at risk of slipping into poverty due to rising health bills and reducing income. GOI has announced a series of steps to combat the recession but most likely or as experts say it will be unfruitful. Large sums promised in spending is not complete solution. India should boost it's ever decreasing exports. Subsituting it's loss with loans don't work. This altogether puts India at risk of going under severe debt and turning into another Greece. Debt from banking system must not be written off but be compensated for within solid backing rather than virtual transaction or transfer of debt. Hope GOI will figure it out.
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