RSS affiliates, opposition parties slam govt on FDI norms

Opposition parties such as the Congress, CPI (M) and TMC also opposed the move to increase the FDI limit in the defence sector

Groups that lean towards the Rashtriya Swayamsevak Sangh (RSS) — including the Swadeshi Jagran Manch and the Bharatiya Mazdoor Sangh (BMS) — on Monday slammed the government’s decision to relax foreign direct investment (FDI) norms.

Opposition parties such as the Congress, Communist Party of India (Marxist) and Trinamool Congress also opposed the move to increase the FDI limit in the defence sector.

“It is not appropriate to open important sectors like defence and civil aviation for FDI,” said BMS General Secretary Virjesh Upadhyay. He demanded the government discuss the issue with all stakeholders. BMS said FDI inflows have not contributed to job growth.

The Swadeshi Jagran Manch said opening of sectors like retail, defence and pharmaceuticals to FDI and relaxing these norms was “betrayal” of the country. SJM national co-convener Ashwani Mahajan said: “The policy is not aimed at job creation. It is aimed at snatching away jobs from Indian people. It will spell a death knell for local businessmen.”

Mahajan said the entry of foreign players in pharma expansion projects would shift ownership of Indian pharmaceutical companies into foreign hands. "The decision is against the public health of not just India but many countries," he said.

Congress leader Jairam Ramesh termed the move a “panic reaction”.

He asserted it would not have come about had Raghuram Rajan not announced on Saturday his decision to not continue as the Reserve Bank of India governor for a second term. The government said the relaxing of FDI norms had nothing to do with Rajan’s decision.

CPI(M) General Secretary Sitaram Yechury said the “dangerous part” was FDI in defence, noting few countries have allowed FDI in this sensitive sector. The Trinamool Congress said in the name of Make in India the Modi government was “breaking India”.

Congress leader and former Defence Minister A K Antony said allowing 100 per cent FDI in the defence sector meant the sector would mostly be thrown into the hands of NATO-American defence manufacturers. He termed it a “big threat” to national security and India’s independent foreign policy.