Agra National Council — Resolution 3

SWADESHI JAGARAN MANCH
National Council, Agra (Uttar Pradesh)
19, 20 May, 2012


Excessive Dependence on Foreign Investment is Ruining the Nation


Swadeshi Jagaran Manch is of the considered opinion that for the present economic crisis, government’s mind set of excessive dependence is responsible. Government has been giving various allurements to attract foreign investors. Now the situation is that the government is working under pressure from foreign investors. Recent statement by the Prime Minister’s chief economic advisor that inability of the government to open up retail sector for multinational corporations, is responsible for the present economic crisis, clearly indicates the extent to which the present government is dancing to the tunes of foreign investors. It is impossible to improve the health of the economy without adopting meaningful Swadeshi alternatives and the fancy for foreign investment is not given up.

Since foreign investors have been given free hand in the name of liberalization, trade balance is constantly widening. Foreign companies have been galloping the domestic companies. Foreign companies have been pushing Indian companies in automobile, telecom and service sector out of competition. In the pharmaceutical sector multinational companies have been taking over Indian companies. Some time back only one company out of top 10 in pharmaceutical sector was in the hands of foreigners, now three out of top 10 multinational corporations. Recently Ministry of Health, government of India has cautioned against the takeovers by multinational corporations, of pharmaceutical companies, and recommended for taking suitable steps to curb the same. But it is unfortunate that government in its enchantment for foreign investment has chosen not to act in this regard.

Sinking value of Rupee, post Euro crisis is making everybody sleepless. The exchange rate of rupee, which was rupees 48.7 per US dollar has gone down to rupees 56 per US dollar. Anybody can understand the miserable condition of our imports due to constantly sinking money. Huge trade imbalance is widening fast and our foreign exchange reserves are depleting fast. Government has been proved to be totally useless and is acting like a mute spectator. It is feared that if situation continues like this, inflation will further flare up and living standards of the general public will further get deteriorated.

The government has not only been giving free hand to foreign investors, rules and regulations are being amended to suit their requirements. They have been given full freedom to carry out their plunder in infrastructure sector also. Many facts have come to the fore, which depict that multinational companies are escalating project cost to multiply their profits and plunder the national resources. Comptroller and Auditor General of India (CAG) has also warned the government against undue escalation of project costs and has said that if they are not stopped, they may cause a big disaster for the nation. On the other hand government has been neglecting natural and human resources of the nation as it has failed to provide reasonable health and education facilities for the people. Agriculture is being totally neglected, as hardly one percent of central budget is being spent on agriculture. Farmers are increasingly getting dependent on foreign companies for their seeds and fertilizers requirements. Government has failed in procuring food grains for the farmers and thus providing them remunerative prices for their produce. Food grains are rotting in open. The government, expert in patting its back, has actually duped the people, as they are neither getting employment nor food security.

Salaried people are also fed up with the government as cost of living has been rising making life difficult for them. In the name of controlling inflation Reserve Bank of India has been constantly raising interest rates, which has been discouraging investment in the country. Businesses are getting spoiled due to rising interest rates. Domestic savings which have been saving the nation from disasters is also affected due to eroding saving capacity.

This National Council of Swadeshi Jagaran Manch demands that the government give up its enchantment for foreign investment and domestic investment be encouraged. A minimum of three years lock in period be imposed on investments by foreign institutional investors (FIIs). Tax be imposed on incomes of FIIs on the lines of Brazil. Tax concessions on foreign investments through Mauritius route be withdrawn forthwith. Ban be imposed on imports from China. Credit is made available for agriculture and small scale industry on easy terms. At no cost permission be granted to foreign companies to enter into retail sector. Stop acquisition of agriculture land for industrial, residential or any other non-agricultural use.

Swadeshi Jagaran Manch demands a white paper on the loss to the economy caused by foreign institutional investors including depreciation of rupee.