Indian Prime Minister Narendra Modi said on Friday he has decided to repeal three controversial agriculture laws against which farmers have protested for more than a year.
“Today I have come to tell you, the whole country, that we have decided to withdraw all three agricultural laws,” Mr Modi said in an address to the nation.
“In the Parliament session starting later this month, we will complete the constitutional process to repeal these three agricultural laws.”
"I appeal to all the farmers who are part of the protest to now return to your home, to your loved ones, to your farms and family. Let's make a fresh start and move forward."
The announcement sparked celebrations among farmers, who said they would wait for the government to follow through on Mr Modi's announcement before calling off their protests.
The agriculture laws passed in September last year allowed farmers to sell produce to buyers out with government-regulated wholesale markets, where growers are assured of a minimum price.
Mr Modi's government has defended the laws, saying they were necessary to modernise the agriculture sector and would boost production through private investment. But the farmers said the laws would affect their earnings by ending guaranteed pricing and force them to sell their crops to corporations at cheaper prices.
The decision to scrap the laws comes before local elections in key states where farmers are an influential voting bloc.
Arati Jerath, a political analyst in Delhi, said it was a rare policy reversal by Mr Modi, who began a second consecutive five-year term as prime minister in 2019 after his Bharatiya Janata Party won parliamentary elections in a landslide.
"It is unprecedented because Modi never takes back a decision. The link to the coming polls is so obvious that I don't think you can give him any brownie points. It won't pass as if he has done something for the welfare of the farmers or has actually listened to their problems and tried to make amendments to something he did to hurt them," Ms Jerath told The National.
She said the decision could boost the BJP's prospects in state legislative elections Punjab and Uttar Pradesh, which will go to the polls in February or March.
"There is a strong possibility that Akali Dal will come back to the BJP, and BJP, Akali Dal and Amarinder Singh put up a fight as a three-part alliance against Congress" in Punjab, she said, referring to the BJP's former alliance partner and the former head of the state government led by Congress, India's main opposition party.
"And in Uttar Pradesh, this was playing up very badly for the BJP because farmers have taken a vow to defeat the BJP in next year's election. The state is their actual stronghold so they had to do something to placate the farmers."
However, the repeal of the legislation might prove to be too little, too late and might also damage Mr Modi's image as a strong leader, Ms Jerath said.
"This has certainly taken off some of the sheen from Modi's charisma because the fact that he has repealed it after one year of turmoil on Delhi's border, so much violence, so many unnecessary deaths and the kind of toll it has taken on the economy, I think it is bad for his image. He has done it from a position of weakness rather than from a position of strength," she said.
Many farmers voiced their delight. "We are thrilled. I feel our struggle and sacrifices of those who died during the protest, has paid off," said Sandeep Sindhu, 27, a farmer from Punjab's Mohali district who has been taking part in a protest near New Delhi since last November.
"But we don't believe this government because they can go to any extreme for elections. We will go to the Parliament for our planned rally on November 29 if the government doesn't repeal it before that," he told The National.
Tens of thousands of farmers have been camped outside the capital after being stopped from entering during violent clashes with police last November. The protests became a lightning rod for opposition to Mr Modi's government in a country where two thirds of the 1.3 billion population rely on agriculture for their livelihood.
The size of the camps waned in recent months but large demonstrations were expected for the first anniversary of the start of the rallies later this month.
The protests took a violent turn in January when a tractor rally in Delhi on India's Republic Day developed into a rampage that left one farmer dead and hundreds of police officers wounded. Last month, eight people died in clashes in Uttar Pradesh.
Mr Singh, former chief minister of Punjab state – home to many of the protesting farmers – hailed Mr Modi's announcement as "great news".
"Thankful to PM @narendramodi... for acceding to the demands of every Punjabi," he tweeted.
The prime minister's announcement came on Guru Purab, the birth anniversary of Guru Nanak, the founder of Sikhism, to which many of the protesting farmers adhere.
With reporting from agencies
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Results
5pm: Wadi Nagab – Maiden (PA) Dh80,000 (Turf) 1,200m; Winner: Al Falaq, Antonio Fresu (jockey), Ahmed Al Shemaili (trainer)
5.30pm: Wadi Sidr – Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel
6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Fakhama, Fernando Jara, Mohamed Daggash
6.30pm: Wadi Shees – Handicap (PA) Dh80,000 (T) 2,200m; Winner: Mutaqadim, Antonio Fresu, Ibrahim Al Hadhrami
7pm: Arabian Triple Crown Round-1 – Listed (PA) Dh230,000 (T) 1,600m; Winner: Bahar Muscat, Antonio Fresu, Ibrahim Al Hadhrami
7.30pm: Wadi Tayyibah – Maiden (TB) Dh80,000 (T) 1,600m; Winner: Poster Paint, Patrick Cosgrave, Bhupat Seemar
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”