NEW DELHI, March 26: Finance minister Yashwant Sinha on Thursday told the Lok Sabha that the BJP government would pursue a totally Indian model for economic development in which both domestic and foreign investor would be treated on an equal footing.Replying to a discussion on the interim budget, Sinha said swadeshi would be the backbone of BJP's economic policy which clearly meant "defending, protecting and safeguarding the country's interests".He said BJP government would formulate policies which were totally "hassle free" both for domestic and foreign investors. "Foreign investment is welcome but it would be only in priority areas. It will not be encouraged in those areas where the foreign investor is coming for his own profits," he added.Criticising the approach of the previous governments, Sinha said foreign investment had no doubt a role to play but it could not be the sum total of the economy which was far greater.The finance minister referred to the oft repeated demand for level playingfield and said "this government shall not accord to the foreign investor any concessions which it is not able to accord to the domestic industry." Sinha said at no point of time did the foreign investment occupy more than two per cent of the total domestic investments. It was for this reason the BJP government proposed to increase domestic savings to 30 per cent in the next five years.
