Easing of FDI norms will be disastrous for India: CPI

It said FDI in defence sector will push India to dependence on US- Israeli clique and have adverse impact on our security, sovereignty

CPI Tuesday attacked the government over relaxation of FDI norms in various sectors including defence, saying the "disastrous" move will adversely affect the country's security as well as sovereignty and make India dependent on "US-Israel clique".

"The Central Secretariat of CPI expresses serious concern on relaxation of FDI norms that will adversely affect the country's security as well as sovereignty," the Left party said in a statement.

Contending that the Modi government had made India a "junior partner" of the US, it said FDI reforms in defence sector will make the country dependent on American/Israeli "clique".

"FDI in defence sector will push us to dependence on US- Israeli clique and have adverse impact on our security as well as sovereignty," it added.

The communist party further rejected government's claims that the move will help bring in investment in the country and create job opportunities, saying in reality the measures will carry "adverse impact".

"In the garb of 'Make in India', the FDI will be brought to set up 'assembling units' that will destroy all concerned small and medium industrial units in the country and throw hundreds of thousands out of job," it feared.

Similarly, CPI said, opening pharma sector will pave way for merger and take over in the sphere, establishing monopoly of foreign players.

"The relaxation in the clause for 30% local procurement will adversely affect all the sectors including agriculture," it added.

Government had yesterday launched a second wave of FDI reforms allowing 100% inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals.