The Polit Bureau of the CPI(M) strongly condemns the announcement by the Prime Minister easing the regulations for Foreign Direct Investments in our country. 15 areas, including single brand retail, banking, construction, media, airlines, defence, banking, plantations etc., are to be opened up for approval under the automatic route.
As the Defence Minister, you had signed the ten-year Defence Framework Agreement with the United States government on June 3, 2015. The reports about this agreement have also appeared in the media. However, the text of the agreement has so far not been made public.
Press Statement Six Left parties, the CPI, CPI(M), CPI(ML)-Liberation, AIFB, SUCI(C) and RSP have issued the following statement:
The Modi government and the BJP have unleashed the forces of Hindutva which threatens the secular and democratic values of the Indian Republic. It is at such a juncture that the Government has invited President Obama of the United States of America to be the Chief Guest of the Republic Day on January 26.
During the nearly two months of the Narendra Modi government, it has become clear that the government will adopt policies for the benefit of big business and international finance capital. The direction of the Union Budget for 2014-15 is to provide concessions to the corporates and the upper classes at the expense of the poorer sections. It is a trajectory for significant privatization of the economy through large-scale sale of public sector shares and greater reliance on public-private partnership. The fiscal deficit will be reined in only by expenditure cuts and squeezing the people further.
This bankrupt policy of the government is motivated by the need to attract more foreign capital flows to meet the widening current account deficit. But the supine attitude of the government to foreign capital is only going to lead to further flow of profits and resources out of the country.