NEW DELHI: Government’s decision of allowing 100 % FDI for single brand retail has received criticism from the BJP’s ideological mentor RSS.
Swadeshi Jagran Manch, the RSS economic wing has strongly opposed the decision of the Union Cabinet allowing 100% FDI under automatic route for Single Brand Retail Trading (SBRT) and Construction Development. Moreover, they have also expressed strong resentment to Union Cabinet’s decision to allow foreign investment up to 49% in Air India and other decisions about easing of norms for FDI and FIIs. It has also called upon the governments to revisit this decision and do not tinker with the 30% mandatory procurement by MNCs from within the country.
Swadeshi Jagran Manch has said that easing the norms for FDI in SBRT would go against the best interest of the country. “More worrisome is the decision to set off the condition of mandatory sourcing requirement of 30% of purchases from India, for 5 years after the opening of the first store by the foreign company. As a result of this decision foreign companies would get freedom of procuring the products from anywhere in the globe. This would go against the interests of the domestic manufacturing and also would discourage the future investment in manufacturing in India and therefore would go against the own declared policy of the government of encouraging ‘Make in India’,” said Ashwani Mahajan, national co-convener, SJM.
Swadeshi Jagran Manch has also expressed its deep displeasure about government decision to allow 40% foreign investment in Air India. It has said that allowing 49% foreign investment is not the best of the solutions for ending the troubles with the National Carrier.
“Firstly there is a need to make an enquiry into the state of affairs in Air India and also into the causes of its ill health; and thereby fixing the responsibility for the same. Secondly, there is a huge amount of resources of Air India lying idle, which could easily be monetized to take the National Carrier out of the blues. Thirdly, as the decision apparently shows that a strategic partner would be looked for, making investment in Air India. This would be against the basic prudence of disinvestment, as it would lack transparency in the decision,” added Mahajan.
Under the circumstances, it would be prudent to honour the report of the Parliamentary Committee, which has recently recommended against the disinvestment in Air India and has recommended for holding back this decision for the time being, the SJM said.