Regulate Fiis To Check Flight Of Foreign Capital

Excerpts:

Q: What was the basic guiding principle for the manifesto?

A: One, hunger and unemployment to become the highest priority by rejecting the trickle-down theory and taking the problem head-on. Two, swadeshi to be strengthened by a nationalist stand vis-a-vis WTO and a protectionist stand vis-a-vis foreign companies and foreign capital, barring the contributions of NRIs. Three, emphasising the contributions and thereby the need to strengthen the unorganised sector, particularly the artisan sector that has its social message. Four, emphasise on agriculture, small scale industries and protection to Indian industry.

Q: Why a special focus on the Bhagirdari sector? Are you catering to your established vote bank?

 

A: Stress on this sector is not from the angle of vote bank politics. It stems from national economic development. This section can propel Indian economy, but has been vastly neglected in the last 50 years.

Q: The manifesto depicts a limited role for foreign investment?

A: We will allow foreign investment in infrastructure, ports, roads and power. We have been categorical in saying no to foreign investment in the consumer sector. Further more, local industries will have to be given preferential treatment.

Q: You have been silent on the role of the FIIs?

A: We thought that we will think of alternative methods to see that the flight of foreign capital does not damage our economy the way it did to East Asian economies.

Q: How do you intend to do this? By provision of a lock-in period?

A: We have already said that there will be no lock-in, but we have not ignored the problems of the flight of foreign capital. It needs some regulating. We will think of what we need. Others also have understood our determination on this score.

Q: But you are still not clear about the partys approach to the FIIs?

A: I can only say that we are categorical in developing the means for protecting our national interest.

Q: Party President L K Advani said while releasing the manifesto that the BJPs policies will be prospective rather than retrospective? Will it not create monopoly of a few foreign MNCs which are already in the consumer sector?

A: Though it is prospective, it does not mean that we will allow laissez faire on issues which may affect our national interest. We will promote local industries. For foreign companies already operating in the consumer sector, we will continue to evaluate their performance on the basis of three parameters: capital formation, employment generation and foreign exchange earning.

Q: Has the BJP assessed the existing companiess performance on the above criteria?

A: Some organisations have studied the performance of around 300 companies.