Updated: June 21, 2016 3:12:14 pm
An RSS-affiliate body on Monday termed as “betrayal” of people’s trust the Centre’s decision to relax FDI norms in various sectors and criticised the move, which it said will spell a “death knell” for local businessmen.
The Swadeshi Jagran Manch, which has been citical of some of the economic policies of the Modi government, lamented that the BJP-led dispensation was pursuing the same policy on foreign direct investments (FDI) as followed by the previous government and this will adversely affect job creation.
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“Opening up sectors like retail, defence and pharma to FDI and by relaxing norms is ‘betrayal’ to 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 PTI.
Criticising the policy, he said the previous government had faced strong opposition while relaxing sourcing norms and domestic procurement in single-brand retail and added that it was “unfortunate” that the NDA government has done the same.
However, the previous government had “promised” that local sourcing norms will not be relaxed in any way, he said. Mahajan alleged that the “problem” with this government is that it works with the same mindset as that of previous regime as it feels development and job creation is created and is possible only with FDI.
“Whereas, the FDI policy adopted now will adversely affect job creation in the country,” he claimed.
Hitting out at the government, the Manch alleged that the move will provide ease of doing business only to foreign businessmen.
“This 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,” he said.
Mahajan also criticised the entry of foreign players in brownfield pharma projects, claiming it would mean shifting of ownership of Indian pharmaceutical companies into foreign hands.
“They (foreign players) should only be allowed in greenfield pharma projects,” he said, adding the edge the Indian pharma industry has in international market would be adversely affected.
“The decision is against the public health of not just India but many countries,” he claimed.
The government today 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.
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