Haryana’s budget will give a further boost to export promotion, food processing with special emphasis on millets and job creation. This was announced by chief minister Manohar Lal Khattar, after a pre-budget consultation with industrialists from across the state in Gurgaon on Monday.

'We will focus on export-oriented industries to increase exports from the state. With the increase in exports, we will be able to fetch foreign exchange and would make a more meaningful contribution to the national economy,' said Khattar. 'Exports will increase our forex reserve, improve balance of payment and strengthen our national economy.'

The CM was in Gurgaon for a pre-budget consultation with industry associations from sectors from across the state. The meeting was basically a feedback and suggestion session organised by the state government before the budget in the last week of February. Khattar also holds the finance portfolio.

With 2023 being celebrated as the ‘year of the millet’, Khattar said that the upcoming state budget will stress on developing food processing units based on millets.

 

'We are a major agriculture state and food processing units will be helpful. The millets-based food processing units will make millet farming more beneficial for farmers.'

The CM also said that infrastructure development will be another focus area in the budget as it will help in attracting more investments. On the increasing debt, Khattar said that the ideal gross domestic product (GDP) to debt ratio should be 25% and 'the state's economic condition is better'. 'Debt is less than 25% of our GDP, our finances are sound and much better than many other states,' he said.

On their part, however, the industry leaders highlighted their pain points.

JN Mangal of the Gurgaon Industrial Association, said, 'Several auto ancillary units would soon be at a crossroads for want of new technology and products due to the advent of electric vehicles (EV). We suggest that the state should set up an R&D, incubation and training centre for lithium-ion batteries, drone technology, semiconductor and hydrogen in Gurgaon.'

Shripal Sharma from Kadipur Industrial Association, said the government should focus on improving infrastructure in industrial areas as well. 'We are struggling to get the basic infrastructure in the industrial areas,' he said.

Around 50 progressive farmers from adjoining areas of the district and registered exporters from across the State participated and shared views on the occasion. In the meeting, apart from officers associated with NABARD, Krishi Vigyan Kendra and Agriculture Department were present. It was discussed in detail how to export millet being grown by the farmers of the district to other Countries during the meeting.

 

Speaking as keynote speakers and progressive farmer, Birsa Agriculture University (BAU) Professor, BK Jha said that such kinds of programme is very necessary to increase farmers income because convergence of various agencies like APEDA, various departments of Government and private agencies brings many opportunities among farmers and they will certainly get more better opportunities to increase their income.

 

Jha said that Gumla is known as the millet production hub of the State and the farmers of the district grow different types of millets here by working hard, but due to various reasons and lack of market they are not getting proper price of their products. If the crops of the farmers are sold at the right price in the markets, then the economic condition of the farmers will improve, he added. He also demanded from APEDA to conduct an awareness campaign among the farmers at the earliest.

 

To benefit the farmers, the businessmen who came to participate in the meeting told that the farmers of the block are growing crops in an organic way, its quality should be improved, care will have to be taken, only then it can be exported to other countries.

 

Speaking on the occasion, Business Development Manager, APEDA, Suprava informed about the purpose of the program and said that such programs are being organized to promote exports from the State. She said that the farmers of Jharkhand are very hardworking and they are working hard and growing a variety of millet crops in their fields. Farmers are being made aware about exporting some of the major crops grown by them to other countries, she added.

 

The Business Development Manager said that APEDA is primarily an export promotion organization under the Ministry of Commerce and Industry, Government of India and the main objective of this organization is to encourage export of major crops grown by the farmers.

 

NABARD, DDM, Ravishankar, District Agriculture Officer, AK Sinha were also present on the occasion.

The two-day meeting of the first International Financial Architecture Working Group of G-20, being held under the chairmanship of India, was inaugurated in Chandigarh today by the Union Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar and Minister of Food Processing Industries, Shri Pashupati Kumar Paras. On this occasion, Shri Tomar said that India is developing rapidly with science and innovation, both of them are deeply connected with the future of India. We have leveraged technology to create the digital public infrastructure. We have been a significant contributor to financial inclusion in global healthcare and the move to sustainable energy while people-centric development is the basis of our national strategy. This is the same philosophy that the theme of our G-20 Presidency, - 'One Earth, One Family, One Future', also underlines.

 

Union Minister Shri Tomar said that India's chairmanship of G-20 is a proud moment for all our citizens, besides we are well aware of the responsibilities that come with this historic occasion. Today the world is facing many complex challenges, which are deeply interlinked and are not defined by boundaries alone. The challenges being faced are global in nature and require global solutions, therefore the world community today needs to push more towards globally coordinated policies and actions. There is also a need for a renewed faith in multilateralism. Our nation, that is fully committed to democracy and multilateralism,  is poised to demonstrate not only multidimensional development but is also ready to display universally recognized power. It is not surprising that India was described as a beacon in a fragile world at the recently held World Economic Forum meeting and India's commitment to climate goals and return to the post-Covid development path has been lauded by one and all.

 

Shri Tomar said that India is ready to fulfil the responsibility given to it. We will be happy to share our template of the development model, so also we look forward to learning from all. Through our priorities and outcomes this year, through deliberations, we aim to find practical global solutions. In doing so, we also take a keen interest in amplifying the voice of the Developing countries. Shri Tomar said that we cannot leave anyone behind now. Through our inclusive, ambitious, action-oriented and decisive agenda of the G-20, we aim to express the true spirit of our goal, - 'Vasudhaiva Kutumbakam'.

 

Referring to the exemplary contribution of this group in providing aid to the most vulnerable and low-income developing countries in the recent years, he said the measures taken to alleviate the rising insecurity over credit flow are particularly noteworthy. The growing momentum regarding efforts will continue during India's chairmanship in 2023. The group will also consider how we can leverage the group’s comfortable position to redesign global and financial governance. Under the chairmanship of India, the group will try to find out how to better equip the multilateral development banks, the major catalysts of development, to meet the global challenges of the 21st century. Remembering the Father of the Nation, Mahatma Gandhi on this occasion, Shri Tomar quoted him and welcomed the delegates on behalf of the Prime Minister Shri Narendra Modi and all citizens of India, wishing success to the meeting.

 

Union Minister Shri Paras said in the meeting that India's effort is to facilitate constructive dialogue, create, share knowledge and share the collective aspiration for a secure, peaceful and prosperous world. We have to work together in the direction. He said that during India’s presidency of the G-20, it is our responsibility to advance progress and ensure that the international financial architecture today is well equipped to meet the acute challenges and provide maximum support to vulnerable groups. The Prime Minister Shri Modi, in his address to the World Economic Forum, Davos Summit, deliberated upon whether the multilateral organizations are ready to meet the challenges of the new world order. This working group is committed to meeting these challenges and in order to enhance their contribution to development financing towards meeting the development goals, this group may explore options to strengthen these organizations. It is imperative to urgently identify such systems that enable the financial assistance provided by international financial institutions is effectively responsive to the needs. This is important for the low income and developing countries, as they are the major beneficiaries of these resources. Countries most affected by rising debt, again are the low-income countries and most are the middle-income countries. The Working Group can deliberate upon how policy initiatives can address the worsening credit situation. It is the hope that with a diverse array of eminent experts from around the world, the International Financial Architecture Working Group is better poised in coordinating the G20 efforts towards developmental financing, supporting vulnerable countries, maintain financial stability and achieve the goal of 'One Earth, One Family, One Future'.

 

The meeting was attended by IFA co-chairs Mr. William Roos (France), Byungsik Jung (South Korea), Additional Secretary, Union Ministry of Finance, Smt. Manisha Sinha, RBI Advisor Smt. Mahua Rai were among dignitaries present.

India’s open import policy sans any curbs is expected to encourage growers of pulses such as tur (arhar or pigeon pea) and urad (black matpe) in major producing countries such as Myanmar and East Africa to plant more in the upcoming planting seasons, trade experts said.

 

Anticipating a shortfall in tur and urad output due to erratic weather, the Centre recently announced the extension of the duty-free import policy for these two pulses till March 31, 2024.

 

President of Overseas Agro Traders Association (OATA), Myanmar, Shyam Narsaria, told a webinar on the outlook for tur and urad, that the timely extension of the policy to allow imports without any duty and restrictions will help farmers in Myanmar and Africa to plan their sowings to meet the Indian demand.

 

Crop outlook lowered

Rohit Kumar Singh, Secretary, Ministry of Consumer Affairs, Food and Public Distribution, said the production of tur during the kharif 2022-23 season is likely to be at around 32-33 lakh tonnes (lt), lower than first advance estimates of 38.9 lt, due to the impact of excess rains and the wilt disease in the key-producing regions of Karnataka and southern Maharashtra. Last year, tur output stood at 43.4 lt.

 

Singh said the lower output would lead to higher imports of around 10 lakh tonnes this year, which will be mainly from East Africa and Myanmar. 'Since the sowing season begins there, we wanted to provide some sort of a comfort level for growers in East African countries that there is a market going to be available in India,' Singh said.

 

Negligible volume

Mahesh Ghedia, Director of Africa-based Bajrang International Group, said in terms of total volume, the pulses exports from Africa is negligible compared to other major producers. Total pulses export out of Africa is around 1-1.5 million tonnes, which includes 4-5 lt of tur, 3-4 lt of chick pea and 1.5-2 lt of green gram.

 

Ghedia said compared to developed nations, the African pulses are produced by smallholders using their conventional method of growing and harvesting and have managed to maintain their importance in the Indian market even though volumes are small.

 

'We recommend that pigeon pea/tur should be permanently removed from the restricted commodity items list as it does not compete with Indian farmers in any manner, nor that they can double/triple production overnight unlike developed countries. Hence, the Government should not have any fear with regard to African imports into India and competition with Indian farmers.' Ghedia said.

 

Manoj Chowdhary, Country Head for SunImpex International Foods LLC, Myanmar, said consistent policy from India will help consistent production in Myanmar, which caters to the Indian demand in a big way. Tur production during 2023 in Myanmar is estimated to about 22 per cent more at 2.80 lt during 2023, from previous year’s 2.30 lt.

 

Manohar Bhojwani, CEO, Diet Foods International said India has imported about 4.32 lt of tur till November in 2022-23 as compared to 8.40 lt during 2021-22. Myanmar accounts for about 60 per cent of India’s tur imports, followed by Mozambique at 20 per cent, Sudan 11 per cent, Tanzania at 4 per cent and Malawi at 3 per cent.

Bangladesh is going through a 'golden chapter' in terms of its relations with India, Dhaka foreign minister AK Abdul Momen said, adding that the trade relations between the two nations are also on witnessing a boom.

 

Speaking at an event, Momen said: 'You will be happy to know that we have developed a very good relationship with India.'

 

He also thanked the Indian government for respecting Bangladesh by inviting the country to all the meetings and Summit of the G20.

 

Momen will be visiting India to attend the G20 foreign ministers’ meet which is scheduled to be held in the country’s capital New Delhi on 1 and 2 March.

 

Bangladesh to maintain good relations with India, US, China 

 

Momen said that Bangladesh would continue to maintain a balanced foreign policy with 'powerful countries' – India, the United States and China.

 

'My challenge is… I have to maintain the relationship with these three countries in such a way so that we can have an improved relationship with each country,' he said.

 

‘Bangladesh cannot ignore any country’

 

The Bangladesh foreign minister said that his country 'needs to move ahead maintaining a balance with India and China.'

 

Praising Bangladesh Prime Minister Sheikh Hasina, Momen said that it is because of the 'great and pragmatic leader' that the country is 'lucky to manage equally good relations with all major powers'.

 

The minister also boasts about the friendly ties that Bangladesh shares with Russia, the European Union and the countries in the Middle-East including the Kingdom of Saudi Arabia.

 

He added that the US is a 'major power' and Bangladesh will have to pursue good relations with the country.

 

Future world will be Asia-led

 

Momen said due to its important geographical location, Bangladesh has become a centre of interest. He also thinks that the future world will be an Asian-led world.

 

The foreign minister said that Asia is on track to top 50 per cent of global GDP by 2040 and drive 40 per cent of the world’s consumption.

 

‘Bangladesh model for economic development’

 

Momen said that Bangladesh is now being seen as a model for economic development. He said that the country has three major resources: human resources, fertile land and water.

 

'We will be able to achieve the goal of ‘Sonar Bangla’ if these three resources are properly utilised,' the foreign minister said.

 

Momen emphasised that peace and stability are crucial to continue the development journey.

Union Minister for Agriculture Narendra Tomar on Monday said interest to safeguard the support extended to the agricultural sector in form of subsidy by the government will be protected in the G20 deliberations being held under India's presidency.

 

Addressing the media after inaugurating the 1st International Financial Architecture Working Group Meeting of G20 in Chandigarh, the Union minister categorically said the support for agriculture production cannot be diluted.

 

'Under the leadership of Prime Minister Narendra Modi, India's interest will be protected,' said Tomar while responding to a question, if India will succumb to the pressure from the developing world to end subsidies in the farm sector.

 

On climate change impacting the agriculture, the Union Minister, who was accompanied by Union Minister for Food Processing, Pashupati Kumar Paras, said the year-long deliberations of G20 under India's presidency will definitely have discussions on climate change and its impact on livelihood of farmers.

 

'It's a global challenge and G20 is a going to be a fruitful platform to have deliberations on the issue that is impacting the world,' said Tomar.

 

He said G20 presidency of India is an opportunity to showcase India's strength to the global world.

 

'Earlier, such global summits used to be held in Delhi or in Hyderabad or Bengaluru. Now, as per the Prime Minister's vision, more than 200 meetings are being held in 50 places in the country with an aim to showcase India's cultural and historical strength to the delegates.

 

'The aim is that the delegates visit each and every corner of the country and relish different weather conditions,' said Tomar.

 

More than two lakh international delegates are expected to attend the year-long G20 deliberations.

 

Thomar said the sole aim of the summit is to strengthen the weaker economies.

 

'In today's world, different countries have common problems and G20 is the ideal forum to find solutions to all common issues,' said Tomar.

 

Praising Prime Minister Modi for holding the G20 presidency, Food Processing Minister Paras said, 'All credit goes to PM Modi who has been rated as one of the best Prime Minsters globally.'

Bangladesh is seen as the most willing nation to adopt a modern agricultural policy network, including the use of biotechnology, while India has yet to make its mind on genetically engineered or modified crops, the Foreign Agriculture Service (FAS) of the US Department of Agriculture (USDA) has said. 

 

In Pakistan, a March 2019 moratorium on further approvals for all GM crops except cotton has slowed ongoing research and development activities, while no GM crop is grown in Sri Lanka, the USDA said in its annual report on agricultural biotechnology. 

 

Permits for imports

'India remains undecided on genetically engineered (GE) crops, despite its regulatory authorities clearing on the environmental release of GE eggplant (brinjal) and mustard events. Bt cotton (Bacillus thuringiensis) remains the sole crop derived from biotechnology approved for commercial cultivation,' the USDA’s FAS said. 

 

On the other hand, the Indian government has approved for imports soya and canola oils derived from select GE soya and canola events, along with some food ingredients from microbial biotechnology. 

 

It pointed to the permission given for the import of 1.2 million tonnes of soyabean meal derived from GE soyabean. 'However, India continues to drag its feet on the issue of granting market access for similar products such as distillers dried grains with soluble derived from a GE crop and imports of GE alfalfa hay,' it said.

 

Promoting innovative use

Instead of clearing genetically modified crops, the Indian government has begun to approve the use of innovative biotechnologies, such as genomics and marker-assisted breeding in its biotech projects. 

 

'Organisations are conducting preliminary research on the application of new biotech techniques such as genome editing in agriculture. To incentivise innovation and promote the development of genome-wide analysis and engineering technologies, India’s Ministry of Science and Technology is supporting programmes and initiatives,' it said. 

 

The Indian Council of Agricultural Research and affiliated state agricultural universities and other public sector institutions are researching the use of gene editing and other new tools, it said. 

 

Illegal GM soya, Bt brinjal planting?

India’s policy indecision is despite illegal cultivation of unapproved generically modified crops continuing unabated. Quoting industry sources, the USDA said herbicide-tolerate Bt cotton (HTBt) might account for 15-20 of the total cotton acreage in recent years. 

 

HTBt cotton is mostly grown in Gujarat, Maharashtra, Telangana, Andhra Pradesh, Odisha, Karnataka and Madhya Pradesh. 'Reports allege that HTBt soyabeans are being cultivated in Gujarat and Madhya Pradesh. Sources indicate that Bt eggplant (brinjal) seeds from Bangladesh have found their way into the fields of West Bengal and Orissa and are slowly spreading to other States,' the FAS report said. 

 

Though the Indian government has initiated measures to check the sale of seeds of GM crops, it 'continues unabated', it said. 

 

'The cultivation of the unapproved GE seeds reflects farmers’ frustration with the government’s GE approval process, highlighting a ready demand for the technology,' the USDA said. 

 

Widening Bangla research

Bangladesh, with support from the world’s scientific community, is seeking to play a role in the advancement of biotechnology research of new GE crop varieties, including rice, potato, eggplant, tomato, wheat, and cotton. 

 

'GE research on various rice traits is widening with an aim to develop climate-smart varieties, which is essential for the Bangladesh rice sector. However, the regulatory process for gene-edited biotechnology in Bangladesh is at times insufficient and the scientific community is demanding revisions to the existing guidelines and rules for a more efficient approval process for future GE crops,' the report said. 

 

Stating that Bangladesh is focussed on creating a vibrant and climate-smart agriculture technology, it said the efforts were to reduce poverty levels in the South Asian nation. 'Bangladesh’s agricultural biotechnology sector at a nascent stage of development, but the government seeks to move forward in developing and commercialising modern biotechnology products through its draft National Biotechnology Policy (2020) and draft Action Plan of the National Biotechnology Policy (2020),' it said.

 

Bt brinjal is an example of its success in adopting modern agricultural biotechnology with over 65,000 farmers planting the crop in 2021. Acceptance of the GM crop has steadily increased in the South Asian nation since it was commercially introduced in 2013 'with farmers seeing increased revenues and yields', it said.

 

This has encouraged scientists and policymakers to develop more GM crops, including saline-tolerant, stress-tolerant and insect-resistant rice, blast-resistant wheat, late blight-resistant potato, and bollworm-resistant cotton, the USDA said.

 

However, there is some pause in the political community in accepting modern technology, though government officials are responding to consumer concerns.  

 

Hindering R&D investments

Like India, cotton remains the only GE crop approved for cultivation in Pakistan. 'The underdeveloped and loosely enforced regulatory framework governing advanced agricultural technology continues to hinder life science companies’ investment in GE seed research and development,' the USDA said. 

 

However, Pakistan imports GE soyabean with US share being 40 per cent. The report said Pakistan’s Ministry of National Food Security and Research, in conjunction with National Biosafety Committee, suspended research and commercialisation of GE hybrid corn in 2019.

 

This was due to their assessment that local corn production, using non-GE seeds, was sufficient to meet domestic demand. As a result, GE trials on all crops, except for cotton, have been put on hold. 

 

Since then, NBC has not approved any applications for laboratory, greenhouse or field trials for corn or other food crops.  

 

In Sri Lanka, despite no GM crop being produced, some research is being carried out at the laboratory level. 'The lack of a legal framework and biosafety procedures is a major setback; the country is in the process of finalising regulatory biotechnology policies,' the USDA said.

India is an agricultural country. Whenever the economy is shaky. The effects of the recession are starting to show. Then only agriculture works to handle the falling economy. The yield of crops grown in different states of the country has a different identity. The central government and the state government make all efforts to get the produce of the crops recognized in the country and abroad. Many fruits and vegetables are very famous in Rajasthan too. Now the state government has made their threats visible in foreign countries as well. In this regard, efforts have been started at the ground level as well. 

 

In this way farmers will directly connect with foreign countries

 

The new exercise in Rajasthan has been done by the State Agriculture and Horticulture Department. According to media reports, senior officials of the department have asked the subordinates to motivate the farmers to get them registered with the Agricultural and Processed Food Products Export Development Authority (APEDA). Its purpose will be that the fruits of the farmers will be promoted for export. Looking at the condition of the fruit, APEDA will be able to introduce it directly to the world. 

 

Kinnow, Orange, Pomegranate, Guava will be seen abroad

 

APEDA is planning that there is more production of Kinnow, Orange, Pomegranate and Guava in Rajasthan. These are very tasty to eat and full of nutrients. These fruits will be promoted abroad from the level of APEDA. This will not only promote these fruits, but the income of the farmers will also increase.  

 

Farmers will get the condition of exporting countries registered

 

The state government has clarified that 50 farmers from Jalore, Barmer, Sirohi and Jhalawar will be able to register in a month. After this, other farmers will also register themselves. At the same time, the state government has made another arrangement to check the quality of fruits. Under this, the registration of the farmer will be done according to the condition of the exporting countries. At the time of registration, the record of crop condition at the time of sowing, flooring and harvesting will have to be filled. This will give correct information about the quality of the fruit. 

 

Farmers' income will increase

 

APEDA officials say that Rajasthan has no share in the export of some crops in the country. For example, Rs 688 crore is exported from the country. The state government is trying that the fruits and vegetables that are being grown in Rajasthan. The farmers of the state can get their right price. In this sequence, the fruits produced in the state are being exported. This will also increase the income of the farmers. 

India’s farm trade, which recovered smartly in FY22, will likely hit a record this fiscal, with both exports and imports scaling new peaks.

 

Agricultural exports are expected to hit a fresh peak of $50 billion and imports, too, may touch $34-35 billion, official and trade sources told. Farm trade thus remains more unsusceptible to a global economic slowdown.

 

These data don’t include exports and imports of cotton, often considered part of the textiles and garments trade.

 

Without the ban on the outbound shipment of wheat, broken rice and wheat flour, and curbs on sugar, farm exports would shoot up to about $54-55 billion in FY23 and widen the net trade surplus in this segment, some of the sources said. The export restrictions were imposed by the government earlier this fiscal to tackle elevated inflationary pressure.

 

According to the latest official data, farm exports grew 12.6% on year until December this fiscal to $38.5 billion, higher than the 10.2% growth in the overall merchandise exports. Such imports rose 11.1% to $26 billion, lower than a 24.9% jump in total goods imports. Vegetable oils, comprising mainly edible oil, accounted for 62% of these imports.

 

However, such exports may come under pressure in the coming months once the full impact of the restrictions, imposed in different months, start to hurt after a time lag, analysts said. Wheat exports, for instance, were allowed in limited volumes this fiscal against the letters of credit already issued before the ban; these despatches are now completed. Moreover, the government had banned exports of wheat products on August 27 and broken rice on September 8, the fallout of which will be captured in the trade data in the coming months. Easing commodity prices may also impact export realisation.

 

Farm exports until December this fiscal were driven by a 40.3% jump in despatches of basmati rice to $3.3 billion; non-basmati rice supplies inched up 3.4% to $4.7 billion (these were up 13% until August). Exports of plantation crops, especially tea and coffee, rose 14.6% to $1.5 billion, and those of unmanufactured tobacco climbed 55% to $677 million.

 

Wheat exports in the first nine months of the fiscal inched up 3.9% to $1.5 billion (mainly due to massive despatches before the ban was slapped).

 

Meanwhile, farm imports were pushed up substantially by a 14.7% jump in edible oil purchases to $16.1 billion. Imports of cashew and spices grew 64.6% and 7.7%, respectively, to $1.6 billion and $1 billion, while those of fruits inched up 1% to $1.9 billion. Pulses imports, despite a 19.2% fall, remained elevated at $1.4 billion.

 

Farm exports had hit a record $47.4 billion in FY22 (including cotton they hit $50.2 billion), defying supply-chain woes in the wake of the pandemic. These were buoyed by a resurgence in despatches of marine products and a sustained rise in non-basmati rice supplies last fiscal.

 

Sustained growth in farm exports, which have often performed below par, remains critical to the country, realising its ambitious merchandise export target of $470 billion for FY23. This is because demand for industrial commodities has started to falter due to a recession in advanced economies like the US and the EU.

 

However, given the heightened risks to food inflation, the government has already resorted to curbs or ban on select products. It banned exports of wheat on May 13 and followed up with prohibition of the outbound shipment of wheat products and broken rice. Similarly, it had capped sugar exports in late May at 10 million tonne for the last marketing year through September, although it relaxed the limit later to as much as 11.2 million tonne. For the current marketing year through September 2023, sugar export limit has been capped at 6 million tonne.

India, Washington’s strategic regional partner in the military preparation against China, is further strengthening its links with Sri Lanka and Maldives. Both countries are strategically located in the Indian Ocean.

 

Jaishankar met with Maldives President Ibrahim Solih and Foreign Minister Abdulla Shahid. Solih came to power in late 2018, via a regime-change operation orchestrated by Washington and New Delhi to oust pro-Chinese President Abdulla Yameen. India has rapidly boosted its influence in Maldives since then with a series of defence agreements and investments. 

 

Indian Prime Minister Narendra Modi visited Maldives last August, telling Solih that 'coordination between India and Maldives in defence and security is vital for the peace and stability of the entire region.'

 

In Colombo, Jaishankar held discussions with Sri Lankan President Ranil Wickremesinghe, Prime Minister Dinesh Gunawardana, Foreign Minister Ali Sabry, parliamentary opposition leader Sajith Premadasa, and leaders of the Tamil parties.

 

An Indian external affairs ministry statement declared that Sri Lanka and Maldives are India’s maritime neighbours and occupy a special place in the Indian prime minister’s vision of 'SAGAR' [Security and Growth for All in the Region] and 'Neighborhood First.' Jaishankar reiterated this in Colombo and presented an invitation from Modi for Wickremesinghe to visit India.

 

The Indian government has used Sri Lanka’s grave economic crisis to strengthen its political influence. Last year, it provided nearly $US4 billion in financial support to Sri Lanka, including credit lines, a currency swap arrangement and deferred import payments.

 

India and China, Sri Lanka’s main creditors, have been urged to make concessions to Sri Lanka’s 'debt restructuring' arrangements as required by the International Monetary Fund (IMF). Colombo will not be able to obtain a $2.9 billion bailout loan promised by the IMF unless it can restructure its debt.

 

Two days before Jaishankar’s visit to Colombo, the Indian finance ministry wrote to the IMF stating that New Delhi 'confirms' its 'strong support for Sri Lanka's prospective (loan) program and commits to supporting Sri Lanka with financing/debt relief.' The IMF said that this was an adequate guarantee from India, but that China had yet to make a similar commitment. 

 

'India decided not to wait on others but to do what we believe is right. We extended financing assurances to the IMF to clear the way for Sri Lanka to move forward. India will encourage greater investments in the Sri Lankan economy, especially in core areas like energy, tourism and infrastructure,' Jaishankar said.

 

Last December, Sri Lanka agreed to use the Indian rupee for all international trade with that country. A passenger and goods ferry service—from Karaikal in southern India to Kankesanthurai Harbour on the northern Jaffna Peninsula—is also planned.

 

In line with developing military relations between the two countries, the Indian naval ship INS Delhi arrived in Trincomalee, Sri Lanka’s main naval base, for a two-day visit on January 15. INS Delhi is a missile destroyer and the lead ship of her class in the Indian navy. The visit is part of regular Indian navy visits to Sri Lankan ports.

 

Indian Chief of Naval Staff R. Hari Kumar visited Sri Lanka from December 12–16, following a trip to Colombo by Samant Kumar Goel, head of the Indian foreign intelligence service, the Research and Analysis Wing, on November 21.

 

A high-level delegation from the Communist Party of China also made a five-day visit to Sri Lanka on January 14, underscoring the intense geopolitical competition between India and China for influence on Colombo.

 

The delegation was led by China’s International Department Vice Minister Chen Zhou who met Sri Lankan Prime Minister Gunawardana, former President and Prime Minister Mahinda Rajapakse and several other political leaders. 'China is willing to work with any party and [that] collaboration with Beijing can benefit the developing world greatly,' Chen said.

 

Beijing, which has heavily invested in Sri Lanka, is seeking ways to maintain and strengthen its influence. China has lent to Sri Lanka about $7 billion, the largest single component of Colombo’s total foreign debt.

 

New Delhi, backed by Washington, is determined to break Colombo’s relations with Beijing. In December 2021, following objections from India, China halted construction of a renewable energy project on three northern Sri Lankan islands in the Jaffna Peninsula, 50 kilometres off the southern Indian coast.

 

Last August, Sri Lanka was caught in a geopolitical maelstrom over the visit of Yuan Wang 5, a Chinese ship. While Beijing said it was a research vessel, Washington and New Delhi branded it a 'spy ship.' Sri Lanka’s foreign ministry first responded to the controversy by urging Beijing to postpone the visit indefinitely but later allowed it to dock at Hambantota Port.  

 

The US is aggressively intervening in the region. It considers Maldives and Sri Lanka key points to block sea lanes across the Indian Ocean in the event of conflict with China. These shipping routes serve as Beijing’s lifeline for trade, including vital oil imports, and protecting its investments. 

 

The US Navy and Marine Corps has just finished its regular biannual Cooperation Afloat Readiness and Training/Marine Exercise (CARAT/MAREX) with the Sri Lanka Navy and Air force. The January 19–26 exercises included the Japan Maritime Self-Defense Force and the Maldives National Defence Force. The land training component was done in Sri Lanka and the sea phase in the Laccadive Sea, situated between Sri Lanka and Maldives. The drills began in 2017.

 

These developments occur amid intensifying US-led NATO military operations against Russia in Ukraine. Washington, which considers Beijing its most significant strategic competitor and rival, is escalating its military build-up against China, supporting the rearmament of Japan and providing advanced weaponry to Taiwan in preparation for war. New Delhi is a key player in this dangerous military-strategic buildup.

 

Sri Lanka’s ruling elite cannot maintain a balancing act between China, on one hand, and the US and India on the other. Indications are that Colombo will line up behind US imperialism. It still maintains its Acquisition and Cross Service Agreement with the US, allowing it to acquire defence logistic support in Sri Lanka.    

 

The US and NATO war against Russia in Ukraine and the escalating military provocations against China pose the danger of nuclear war. The US-led war against Russia in Ukraine has deepened the economic crisis in Sri Lanka and internationally, with devastating impacts on the lives and social conditions of the working class and the rural masses.

 

The looming threat of world war can only be prevented by building a global anti-war movement of the working class and in the struggle for international socialism. It is urgent for workers and youth in Sri Lanka and throughout South Asia to take up this struggle.