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Reforms to appease foreign players: Yechury

sitaram-yechury-l1

New Delhi : CPI(M) today dismissed reforms announced by Centre as Prime Minister Narendra Modi’s efforts to “appease” foreign players ahead of his upcoming G20-UK-ASEAN visits and accused him of helping investors from abroad gain “greater” access to market here at a time when economic crisis prevails globally.

CPI(M) general secretary Sitaram Yechury observed that the declaration of the “so-called” reforms were “mere repetition” of Modi’s poll campaign slogans and it was made without cabinet approval on the eve of winter session of Parliament.

“This announcement has come on the eve of the winter session of Parliament without the cabinet approval. Clearly, this is aimed at appeasing foreign capital on the eve of PM’s foreign trips to G-20, London and Asian.

“With the global economic crisis, foreign players are looking for greater market access and command over Indian resources to maintain its profits. PM Modi is helping that objective, instead of taking measures to provide our people relief from growing prices, agricultural distress and growing unemployment,” Yechury noted.

Pushing ahead with major reforms, the government relaxed foreign investment rules in 15 sectors such as civil aviation, banking, defence, retail and news broadcasting and eased the process for approval of foreign direct investment (FDI).

While 100 per cent FDI has been allowed in DTH, cable network and plantation crop, overseas investment limit in uplinking of news and current affairs TV channels has been raised to 49 per cent from 26 per cent.

The government relaxed conditions for FDI in single-brand retail and allowed 100 per cent FDI under automatic route in duty-free shops and Limited Liability Partnerships (LLP) and eased foreign investment norms in the defence sector.

It has also raised the FIPB’s monetary limit to Rs 5,000 crore from Rs 3,000 crore for approving FDI proposals.