Modi U-turns on Indian farm laws after mass protests

India will scrap agricultural reform laws that sparked a year of huge protests by farmers, Prime Minister Narendra Modi said Friday in a stunning U-turn that sparked celebrations but also criticism from economists.

Thousands of farmers have been camped out on the borders of the capital New Delhi since November last year, handing Modi one of the biggest challenges since his Hindu nationalist government came to power in 2014.

The rallies became a lightning rod for opposition to Modi's administration in a country where two-thirds of the 1.3 billion population rely on agriculture for their livelihood.

In a contrite address to the nation coinciding with a major Sikh festival -- the religion of many farmers -- Modi said the laws would be repealed in parliament's winter session, which begins later this month.

"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 71-year-old said.

The surprise announcement sparked muted celebrations on Friday with farmers chanting, waving flags and beeping tractor horns at two protest sites outside Delhi.

"Until they give it to us in writing, we won't leave from here. We don't trust the government," farmer Gurmeet Singh, 50, told..

"Our farmers have died fighting for this. Until it's passed in the parliament, we won't leave."