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Business News/ Politics / Policy/  RSS affiliate objects against FDI easing

RSS affiliate objects against FDI easing

Swadeshi Jagran Manch says FDI is not the proper way to boost economy

Finance minister Arun Jaitley. Photo: BloombergPremium
Finance minister Arun Jaitley. Photo: Bloomberg

New Delhi: The easing of FDI norms by the Modi government in 15 key sectors faced objections from a second RSS affiliate today with Swadeshi Jagran Manch (SJM) expressing anguish and demanding that it be put on hold.

The SJM also accused the government of acting in haste in the matter. It demanded a white paper detailing the benefits and drawbacks of FDI and said a commission comprising stakeholders should first be set up to examine the issue.

The Manch said that the government’s ‘Make in India’ initiative should be more of ‘Made by India’. “SJM demands that these decisions be put on hold and a commission is constituted taking all stakeholders on board while instituting a comprehensive study to estimate loss to the economy," Ashwani Mahajan, All India co-convener of the Manch, told PTI.

“It is painful to see that the present government continues to follow the policy of previous UPA government in this regard," he said. The opposition from SJM came three days after another RSS affiliate, Bharatiya Mazdoor Sangh, warned the government of mass agitations if the FDI decision was not immediately rolled back.

The SJM said it was “in deep anguish over the central government’s decision to ease FDI norms in almost all major sectors of the economy". The government has been advocating liberal FDI regime under its plans to revive manufacturing sector in the country in the name and style of the Make-in-India slogan, the Manch argued.

Mahajan said it was an established fact supported by empirical data that FDI is not a panacea for all ills. “FDI has done more bad than good to the economy. There have been more outflows of royalty, interest, dividend, profits, salaries, etc., than inflows of FDI." “In 2014-15 alone, while there has been FDI inflow of $31 billion, there has been an outflow of $36.5 billion," he said.

The SJM also contested the government’s argument that FDI would bring growth and create employment in the country.

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Published: 16 Nov 2015, 12:23 AM IST
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