India is large, diverse, and mysterious; it is hard to figure it out. Multiple contradicting narratives exist on what is happening in India today or what Indians want. The Farm Law Repeal, however, offers unique insights into the India of today. Even his most vociferous opponents would agree, PM Modi is an astute politician. The fact that he cut his losses with the laws, came in public to announce the repeal, and admitted to being unable to communicate the benefits of the laws reveals a lot about India.
I had expressed support for the laws, both before and after they were repealed, in two separate columns. To summarize those, the laws may not have been perfect, and some amendments may well have been in order. However, a full repeal is a long-term loss for the average Indian farmer. The laws would have laid a framework for private capital to enter Indian agriculture, which now won’t happen for a while. To twist the iconic words of Neil Armstrong, the repeal is ‘One small victory for protesting farmers, one giant step back for Indian agriculture’.
Of course, there’s no point discussing all that now, as the laws are gone. Neither will any politician dare to suggest farmer reform in India for a while.
Laws aside, here are other insights this repeal offers about India.
- Democracy in India is alive – The naysayers who compare Modi to Hitler or this government to fascist regime needs to make up their mind. Which fascist government head comes on TV to say they are withdrawing a law as they could not communicate it well? To write-off Indian democracy the moment something doesn’t go perfect or like a fully developed Western Democracy (which aren’t all perfect either) is unfair. Some say the PM yielded under pressure due to the looming state elections. Maybe they are right. But isn’t that good? Isn’t that what a democracy is all about? To make the government accountable based on what the voters want. Ultimately, the vote is how a common citizen controls the government in a democracy, and that mechanism is still well in place.
- While Indian democracy is alive, what is dead is elitist hegemony and control over public opinion. The elite sections have always tried to control Indian public opinion and policy narrative. To an extent did control it until a few years ago. This has stopped, mainly due to the rise of Internet penetration and social media, which also coincided with the BJP government coming in power (smartphone ownership and Modi’s rise happened at the same time). The irrelevance of the elitist ecosystem is not the death of democracy. It’s the death of elitism, which may not be a bad thing.
- With PM Modi, everything is personal – Ask any agricultural economics expert, and they will tell you the laws had good things in it. However, since the laws were introduced, backed, and defended by THIS government, and many do not like THIS government, they opposed the laws. It’s personal – seeing Modi lose is more important, even more so than agricultural reforms in the country or whatever else the government might propose.
- We are a Freebie nation – the farmers who opposed these laws want Minimum Support Price guarantees. This essentially means they get assured a price of their produce. Who pays the difference if the market price of wheat and rice is lower than the MSP? The government. Who pays the government? You, the taxpayer. The MSP is yet another subsidy, which is in addition to free electricity, no income taxes, fertilizer subsidies, water subsidies and other welfare measures farmers already get. Ironically, the Indian farmer still remains poor. Maybe the structure of farming is broken? Maybe we can’t afford these subsidies? Maybe the crops they are growing should be replaced with something else more profitable? Maybe some private capital could help that turn around? Well, nobody cares now. But Modi had to retreat – and that almost made scrapping the laws worth it for many opposers.
- Farmers will always be a hot potato topic – any reform or change required of farmers will always create problems for an Indian politician. Even for one of the most popular PMs ever. From crop burning to new reforms – opposition to change for farmers arrives quickly. Pessimism is marketed, and usually sells better than optimism. It soon becomes the dominant narrative, and any change is doomed.
- We need change, but we hate change – This is not only the case with a country like India, but all of us in life. Change is uncertain and scary. But whether as a nation or an individual, we must do it. To compare the worst case of a new law with the best case of the current status-quo is unfair. It will always lead to us staying with the status-quo. Clearly around embracing and celebrating change, we have a long way to go. Overall, the repeal of the laws may be a step back for Indian agricultural reform. However, to end on a positive note, it does have a silver lining. It shows us that our democracy is still alive, and however short-term or freebie minded the voter might be, it is the voter’s will that finally reigns supreme in India. Hopefully, one day we will get over the fear of change too, and then we will change – for the better!