Left parties today attacked the government for relaxing FDI norms in sectors including defence, saying the announcement comes as a consequence of Indo-US strategic partnership and that raises “serious” issues concerning country’s internal security and sovereignty.
The decision will benefit foreign players, but not the country, the Left parties said, while contending that the announcement is timed to spin headlines after RBI Governor Raghuram Rajan opted out from a second term.
They said the decision has been taken without any public discussion and that it goes against the ruling BJP’s own long-standing positions on the issue.
“…this is not in the interest of India and raises serious questions concerning both our internal security and our sovereignty. As a consequence of the Indo-US strategic partnership, the Modi Government has now announced across the board greater access to FDI,” the CPI(M) said in a statement.
“India is permitting foreign capital to reap super profits and seek to emerge out of their global economic crisis at the expense of our domestic economy,” it added.
Party general secretary Sitaram Yechury said the announcement was timed for “spinning the headlines” after Rajan’s decision to not opt for a second term and recalled the last FDI announcement was made after Bihar poll results.
“These announcements have been made without any discussion or public debate, and go against BJP’s own longstanding positions on the subject.
“The economic rationale for these decisions is suspect, as there has been no rush of FDI or jobs in the sectors liberalised last year,” he said in a series of tweets.
He added that there are serious repercussions of allowing greater FDI in defence, private security, airports, airlines, telecom and other strategic sectors.
Speaking to reporters on conclusion of three-day Central Committee meeting of the party here, Yechury said the country has seen more capital going out than what flowed into it over the past 10 years due to the FDI.
“They are giving an opportunity for foreign investors to make profits from here. The country is not going to benefit…the dangerous part is FDI in defence…It is a matter of country’s security. Permission is not given for FDI in defence because of the security aspect of a country,” he said.
On asked about Prime Minister Narendra Modi lauding the reforms saying it will benefit economy, Yechury quipped, “The PM had also said that India is a fastest growing country, but the country has highest number of farmers’ suicide, inflation is there, fall in manufacturing is there.”
CPI national secretary D Raja seconded Yechury and said that the announcement comes in the wake of Modi’s visit to US. He stressed such measures will not help Indian economy, which he added, is already in doldrums.
“Nobody has been takein to confidence. Such reforms must be discussed in the Parliament first,” he insisted.