CPI(M) attacks Modi government over relaxation of FDI norms

CPI(M) today attacked the Narendra Modi government over relaxation of FDI norms in various areas including defence, saying it will affect nation's sovereignty and have a "ruinous" effect on the people of the country.
The Left party also slammed the NDA government for forging close military co-operation with the US, saying the Modi dispensation has "crossed the Rubicon" in this direction and stated the same will have "serious" repercussions for the country's independent strategic decision-making capacity.
"The Modi government is making desperate efforts to attract FDI by encouraging foreign capital to take over existing productive assets and by compromising on vital sectors affecting national sovereignty like defence.

"These policies are going to have a ruinous effect on the people and the country," ex-party general secretary Prakash Karat said in the editorial of forthcoming issue of party mouthpiece 'People's Democracy'.
He sought to see the measures as part of government's alleged aggressive push for neo-liberal policies coupled with imperatives of becoming a "junior" strategic partner of US and buttressed his claim referring to easing of norms in the defence sector.
Karat also suggested there will be "no scope" for any joint production and technological development with the US unless it becomes "a total and subordinate ally and trusted partner" of the US like Israel.

"The latest change in FDI norms show that India is now ready to settle for second best and not the 'state-of-the-art' technology in its desperate quest for foreign arms companies setting up enterprises in India," he said.

He also pitched for India developing military technology on its own as it has capability in the sphere of space and nuclear technology.
Hitting out at the government over its "insidious" move of relaxing norms in the pharmaceuticals' sector, Karat expressed apprehensions that the decision may lead to takeover of Indian companies by MNCs, further resulting in costly medicines for Indians and people of countries where India exports medicines.

Similarly, he described easing norms in food retail trade sector as "retrograde" and claimed it will affect livelihood of lakhs of small traders and shopkeepers.
"In line with its surrenderist approach to national sovereignty, defence and security, the government has facilitated the foreign takeover of the private security industry in the country...The privatisation drive of internal security is now being taken to the level of foreign security companies dominating domestic security agencies," he said.
Government had on June 20 launched a second wave of FDI reforms allowing 100 per cent inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals, steps apparently aimed at neutralising fallout of Raghuram Rajan's decision to exit RBI.