Chennai

“Unregulated FDI poses a direct threat to economy”

India’s continuing ambition to attract Foreign Direct Investment (FDI) poses a direct threat to the country’s economic liberty, said State Secretary of the Communist Party of India D. Pandian on Wednesday.

Speaking in a national conference at Loyola College on the “Impact of FDI on the Indian Economy,” Mr. Pandian criticised national and local authorities for the preferential treatment handed out to foreign investors. Instead of negotiating terms on an equal basis, foreign investors are treated like “royal guests,” he said.

Although he admitted that in some circumstances FDI could be “beneficial to India and its people,” he stressed that as long as strict regulation was not in place, the current system would continue to run counter to the interests of the country, exposing the economy to risks over which it had no control.

Mr. Pandian disagreed strongly with those who advocated increased liberalisation of domestic FDI policy, dismissing the notion that the 8-9 % annual growth rate of India’s economy was reason enough to continue the current trend towards deregulation.

He described the growth figures for India as “bloated and exaggerated,” insisting that the only true measure of growth was in jobs gained versus jobs lost.

The ability of FDI to provide this benefit, he said, had not yet been adequately demonstrated, particularly in the rural sector.

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Printable version | Jul 14, 2020 1:48:29 PM | https://www.thehindu.com/news/cities/chennai/ldquoUnregulated-FDI-poses-a-direct-threat-to-economyrdquo/article16814021.ece

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