FDI reforms: RSS affiliate calls it 'betrayal'

Congress also said that FDI reforms were a 'panic reaction' in wake of Raghuram Rajan's decision to exit RBI

The FDI reforms announced by the government on Monday were slammed by an RSS affiliate as "betrayal" of people's trust while opposition parties said "sweeping" changes in the policy in defence posed "big threat" to national security with Congress demanding its withdrawal.

The Congress also went on to say that the Foreign Direct Investment (FDI) reforms were a "panic reaction" with its spokesman Jairam Ramesh asserting it would not have come about had Raghuram Rajan not announced his decision on Saturday to exit RBI as Governor. The government, however, maintained the reforms initiative had nothing to do with Rajan's decision.

CPI (M) General Secretary Sitaram Yechury said the "dangerous part" is FDI in defence, noting there are very few countries where it is allowed in this sensitive sector.

Opposing the major reforms, the Trinamool Congress said that in the name of 'Make in India' the Modi government is "breaking India".

The Swadeshi Jagran Manch, the RSS affiliate which has been criticising some economic policies of the Modi government, said the FDI reforms 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."

"Opening sectors like retail, defence and pharma to FDI and by relaxing norms is 'betrayal' of people of the country. In doing so, this government has not done good to the country in general and local businessmen in particular," SJM's national co-convener Ashwani Mahajan told Press Trust of India.

In a strongly worded statement, senior Congress leader and former defence minister A K Antony said allowing 100% FDI in defence sector means it is thrown mostly into the hands of Nato-American defence manufacturers.

Antony said "sweeping" changes in the FDI policy posed a "big threat" to national security and India's independent foreign policy.

"Naturally it will affect India's independent foreign policy too. It will also threaten the national security. Moreover, it will have an adverse impact on the ongoing indigenous defense research activities in the country," he said.

It is "very important" to note that all such changes happen immediately after Prime Minister Narendra Modi's recent visit to the US, he added.