New FDI policy to harm industrial and agricultural development: CPI(M)

The CPI(M) today opposed the government’s new FDI policy, claiming that it would not only strengthen the grip of foreign multinationals over Indian companies but also adversely affect agriculture as farmers would be at their mercy for supply of seeds.

Asking the UPA government not to pursue the measures which would “immensely harm our industrial and agricultural development”, the party expressed strong disapproval of the “unjustified concessions” given to multinational corporations (MNCs) to set up new units in the same field of business without approval of their Indian partners.

In a statement, the CPI(M) Politburo said the announcement made by the Department of Industrial Policy and Promotion (DIPP) even allows MNCs to change their Indian partner unilaterally.

“This measure will only strengthen the grip of MNCs over the Indian economy at the expense of Indian companies,” it said.

Pointing out that the notification allowed 100 per cent FDI in development of seeds, horticulture and planting materials without any restriction, it said, “This will adversely affect Indian seed manufacturers and peasants would be at the mercy of MNCs for the supply of seeds“.

The major Left party asked all sections of the people to resolutely oppose these measures to “force the government to withdraw them“.

Under the DIPP’s Consolidated FDI Policy Circular, the government yesterday provided greater flexibility to Indian firms to raise overseas capital and scrapped norms that required a foreign company to obtain its domestic JV partner’s approval for making investments in same field outside the joint venture.