MAINS Current Affairs includes Prime Minister’s Visit to Indonesia & Sub-Mission on Agricultural Mechanization

INTERNATIONAL

1. Prime Minister’s Visit to Indonesia

Context: Prime Minister Narendra Modi paid an official visit to Indonesia, further strengthening the Comprehensive Strategic Partnership between the two important Indo-Pacific democracies. The visit highlighted growing cooperation in defence, maritime security, critical minerals, trade, and regional stability.

Major Outcomes of the Visit

1. Indonesia’s Highest Civilian Honour Conferred on PM Modi

• Prime Minister Modi was awarded “Bintang Adipurna”, the highest civilian award of Indonesia.
• The honour recognizes:
  • His contribution to strengthening India-Indonesia relations.
  • His role in promoting cooperation in the Indo-Pacific region.
  • India’s growing stature in global affairs.

2. Expansion of Defence Cooperation

India and Indonesia signed several important defence agreements aimed at strengthening strategic and military cooperation.

Key Areas:

• Cooperation on the BrahMos Supersonic Cruise Missile System.
• Collaboration on ASTRA Beyond Visual Range Air-to-Air Missiles (BVRAAM).
• Joint production of defence equipment.
• Technology transfer arrangements.
• Defence research and development partnerships.
• Strengthening defence supply chains.

3. Cooperation in Shipbuilding and Defence Manufacturing

Both countries agreed to collaborate in:

• Shipbuilding projects.
• Maintenance, Repair and Overhaul (MRO) facilities.
• Naval infrastructure development.
• Maritime logistics support.

4. Cooperation in Critical Minerals and Steel Supply Chains

India and Indonesia signed an MoU covering:

• Critical minerals technology.
• Steel production technologies.
• Supply chain resilience.

Strategic Joint Venture:

• Collaboration between:
  • Steel Authority of India Limited (SAIL) and
  • PT Krakatau Steel (Indonesia).
• The partnership aims to establish:
  • A stainless-steel slab manufacturing facility in Indonesia.

5. Promotion of Local Currency Transactions (LCT)

The Reserve Bank of India (RBI) and Bank Indonesia agreed to operationalize Local Currency Transaction mechanisms.

Objectives:

• Conduct bilateral trade using:
  • Indian Rupee (INR)
  • Indonesian Rupiah (IDR)
• Reduce dependence on the US dollar.

India-Indonesia Relation: A Brief Overview

• Foundation of Relations:The shared experience of colonialism, and common post-colonial goals drove India’s friendly bilateral relationship with Indonesia in the late 1940s and 1950s.
  • In 1951, India and Indonesia signed a Treaty of Friendshipwhich aimed at perpetual peace and unalterable friendship.
• Founding NAM: India and Indonesia became the voice of independence of Asian and African countries in the UN, which led to Bandung Conference of 1955,and the subsequent formation of Non-Aligned Movement in 1961.
  • India and Indonesia were among the five founding leaders of NAM along with Yugoslavia, Egypt, and Ghana.
• Look East: Since the adoption of India’s ‘Look East Policy’ in 1991, and its upgradation to ‘Act East’ in 2014, there has been a rapid development of bilateral relations.
• Trade Relations: Indonesia is the second largest trading partner of India in the ASEAN region (after Singapore).
  • Bilateral trade increased from $4.3 billion in 2005-06 to $38.84 billion in 2022-23 and $29.40 billion in 2023-24.
  • India-Indonesia bilateral ties were elevated to a Comprehensive Strategic Partnership in 2018. The Shared Vision of India-Indonesia Maritime Cooperation in the Indo-Pacific was also adopted.
• Shared Platforms: Both nations actively participate in major international forums like BRICS, G20, IORA, and the East Asia Summit, fostering cooperation on global issues.

Strategic Importance of Indonesia for India

1. Gateway Between Indian and Pacific Oceans

Indonesia sits astride critical maritime chokepoints including:

• Malacca Strait
• Sunda Strait
• Lombok Strait

These routes carry a significant share of global trade and energy shipments.

2. Maritime Security Partner

Indonesia plays a crucial role in:

• Anti-piracy operations.
• Maritime domain awareness.
• Protection of shipping routes.
• Combating illegal fishing and trafficking.

3. Alignment of Strategic Visions

• India’s “Act East Policy” and “Indo-Pacific Oceans Initiative” align well with Indonesia’s “Global Maritime Fulcrum” vision, creating synergies for regional cooperation in areas like maritime security, connectivity, and economic development.

4. Counterbalancing China’s Growing Influence

Both countries support:

• Freedom of navigation.
• Rule-based maritime order.
• Respect for international law.

This is particularly important in the context of:

• South China Sea disputes.
• Expanding Chinese maritime presence.

5. Counter-Terrorism Cooperation

• Cooperation in counter-terrorism efforts is essential, given the shared challenges posed by extremism and transnational crime.

6. Deep Civilizational and Cultural Ties

Indian civilization has profoundly influenced Indonesian culture.

Examples:

• Ramayana and Mahabharata traditions.
• Hindu-Buddhist heritage.
• Sanskrit influence on Bahasa Indonesia.

Famous Examples:

• Bali’s Hindu culture.
• Prambanan Temple.
• Borobudur Buddhist complex.

These historical ties strengthen people-to-people relations.

Challenges in Relations

• Trade Imbalance:The trade balance is often skewed in favor of Indonesia, mainly due to high imports of palm oil and coal. Both nations are looking for ways to diversify trade to reduce this imbalance.
• Regional Tensions: There are challenges posed by regional tensions and the changing dynamics in the Indo-Pacific, particularly with the rise of China.  Both countries are navigating these pressures while maintaining their strategic partnership.

Concluding remarks

India and Indonesia are natural strategic partners linked by history, geography, culture and shared democratic values. Prime Minister Modi’s visit has elevated bilateral cooperation to a new level by expanding collaboration in defence, critical minerals, maritime security and economic integration. As two major Indo-Pacific powers, deeper India-Indonesia cooperation will play a crucial role in ensuring regional stability, resilient supply chains and a free, open and inclusive Indo-Pacific region.

ECONOMY, AGRICULTURE

2. Sub-Mission on Agricultural Mechanization

Context: The Sub-Mission on Agricultural Mechanization (SMAM) expands access for small farmers, women, and disadvantaged groups through targeted mechanization support nationwide.

The Sub-Mission on Agricultural Mechanization (SMAM) is playing an important role in expanding access to farm machinery among small and marginal farmers, women farmers, Scheduled Castes (SCs), Scheduled Tribes (STs), Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and rural entrepreneurs through targeted mechanization support across India.

About SMAM

• Launched: 2014-15
• It is a Centrally Sponsored Schemeunder the Rashtriya Krishi Vikas Yojana (RKVY). 
• SMAM aims to “reach the unreached”by extending the benefits of mechanization to underserved sections.

Objectives of SMAM

1. Promote Farm Mechanization

• Encourage the use of modern agricultural machinery and equipment.
• Reduce dependence on manual labour and animal power.

2. Increase Agricultural Productivity

• Improve operational efficiency and timeliness of farm operations.
• Reduce post-harvest losses and improve output quality.

3. Reduce Cost of Cultivation

• Mechanized operations lower labour costs and improve resource-use efficiency.

4. Support Small and Marginal Farmers

• Ensure affordable access to machinery through rental services and subsidies.

5. Reduce Drudgery in Agriculture

• Particularly beneficial for women farmers who perform labour-intensive farm activities.

6. Promote Inclusive Agricultural Growth

• Special emphasis on vulnerable and disadvantaged sections of society.

Target Beneficiaries

• SMAM particularly focuses on:
• Small and marginal farmers
• Women farmers
• Scheduled Castes (SCs)
• Scheduled Tribes (STs)
• Farmer Producer Organizations (FPOs)
• Self Help Groups (SHGs)
• Rural youth and entrepreneurs
• Cooperative societies

Status of Agriculture Mechanization in India

• As per the estimates of 2020-21 of Indian Council of Agricultural Research (ICAR), agricultural mechanization level varies across different crops and their farm operation in the country.
• Mechanization Levels:

• Across States :
  • States like Tamil Nadu, Gujarat and Uttar Pradeshwhich have widespread use of machines, lack adoption of weeding machines.
  • Irrigation technologiesadoption is higher in Gujarat and Tamil Nadu but not in other states.
  • Assam and Odishaare still relying on manual operations for majority of the activities.
• In the United States, Western Europe, Soviet Union, Brazil, Argentina, China, India, Africathe level of farm mechanisation is at 95%, 95%, 80%, 75%, 75%, 38%, 40% and 20% respectively.

Need for Mechanization in Indian Agriculture 

• Labour Shortage:In 2017, the number of people employed in agriculture were 145.66 million which dropped down to 143.4 million during the pandemic.
  • The rural to urban migration trend has been observed in all parts of the country which led to situations like labour shortage in agriculture.
• Rise in Labour Wages: With growing demand of labour in the non-agricultural sector due to urbanization and increasing infrastructural capabilities, labour wages have been rising.
• Mechanization of farmsis essential to meet the growing food demand.
• Improvement in Efficiency:There is a need for technologies to improve labour efficiency and reduce drudgery for labour intensive methods of production.
• Gap in India: The level of agriculture mechanization in India stands at 40% which is less when compared to China (59.5%), Brazil (75%) and U.S (95%).
  • The gap has to be filled with mechanization of agriculture to ensure sustained productivity of the sector.

Challenges in Agricultural Mechanization

1. High Initial Cost

• Modern farm machinery involves heavy investment which many farmers cannot afford.

2. Small and Fragmented Land Holdings

• Average farm size in India is around 1 hectare, making ownership of large machines economically unviable.

3. Lack of Credit Availability

Many farmers face difficulties in obtaining:

• Bank loans.
• Institutional finance.
• Machinery subsidies.

4. Regional Diversity

• Different agro-climatic conditions require different machines, increasing complexity.

5. Inadequate Rural Infrastructure

Problems include:

• Poor roads.
• Irregular electricity supply.
• Limited repair facilities.

6. Low Awareness and Technical Skills

Many farmers lack:

• Knowledge of modern equipment.
• Technical skills for operation and maintenance.

7. Seasonal Utilization

• Farm machinery often remains idle for much of the year, reducing economic viability.

Government Initiatives

• Custom Hiring Centers (CHCs): The government encourages the establishment of Custom Hiring Centers where farmers can access expensive agricultural machinery on a rental basis, thereby reducing the cost burden on individual farmers.
• Farm Machinery Training and Testing Institutes (FMTTIs):FMTTIs provide training to farmers and technicians in the operation and maintenance of agricultural machinery.
  • They also conduct testing and certification of agricultural machinery to ensure quality and performance standards.
• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): PMKSY includes provisions for promoting mechanized irrigation systems such as sprinkler and drip irrigation, which contribute to water conservation and efficient water use in agriculture.
• Rashtriya Krishi Vikas Yojana (RKVY):RKVY supports the adoption of modern agricultural practices including farm mechanization through financial assistance to states for promoting agricultural growth and development.
• Promotion of Innovation and Research: The government encourages research and development in agricultural mechanization through institutions like the Indian Council of Agricultural Research (ICAR) and supports innovation and indigenous development of agricultural machinery.

Conclusion

The Sub-Mission on Agricultural Mechanization (SMAM) is a crucial pillar of India’s agricultural transformation strategy. By improving access to modern farm machinery, particularly for small farmers, women, and disadvantaged groups, the scheme contributes towards higher productivity, lower costs, climate resilience, and inclusive rural development. Expanding mechanization while ensuring affordability and accessibility will be essential for achieving the goals of sustainable agriculture and food security in India.

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