12.07.20 - India is arguably going to be the most relevant rising country of the early 21st century. Over the last 20 years it has seen some of the fastest growth world averaging between 6%-7%. What makes India incredibly unique among the rising economies is its youth. In 2019 the average age in India was 26 compared to China at 38 and the United States at 37. India’s voice will carry serious weight on the international stage.
Right now, that voice is being suppressed by its leadership. Farmers angered with new laws introduced by Narendra Modi’s government that would force them into the arm’s large agricultural conglomerates by forcing farmers to sell their crops through licensed middlemen in state-controlled markets instead of directly to firms. Farmers are deeply concerned that they will not receive fair minimum compensation in these state-controlled markets. It is estimated that about 60% of India’s 1.3 billion population is dependent on agriculture in one way or another.
As protestors took to the streets arriving at the capital, the Indian government responded with force with tear gas and water cannons to prevent the protestors from continuing their march into Delhi. Farmers have begun burning their crops in defiance of Modi’s government.
The United States currently imports over $2.6 Billion in agricultural goods from India making the country its 14th largest agricultural supplier, India’s total agricultural exports to the world exceed $38 billion.
These protests are only intensifying with expected numbers of turnout in the millions and no clear end in sight. Both sides seem unwilling to relent.
Source: Bloomberg
