Cong will oppose FEMA amendment: Anand

Tribune News Service

Shimla, June 22

The Congress will vote down the Foreign Exchange Management Act (FEMA) amendment in foreign direct investment (FDI) when it is introduced in Parliament as doing away with some of the important clauses for the pharma and defence sector amounts to compromising on national interest. This was stated by former commerce and industry minister Anand Sharma today.

At a press conference, Sharma, who is also the Deputy Leader of the Opposition, Rajya Sabha, said if the important clauses were done away with, the health of citizens would be compromised and this could pave the way for setting up of obsolete production platforms.

“There is no political honesty in the claims being made by the Modi regime as the Indian economy is struggling and not galloping which is a matter of serious concern,” he remarked.

He added that the economic figures being claimed by the government seemed suspect, especially in a scenario when the national interest rate had fallen below national saving rate.

“It is unfortunate that the Modi-led NDA government has done away with the non-competing clause in the pharma sector and allowed brown field foreign direct investment (FDI) without government scrutiny, which is a grave risk,” he said.

Sharma said as far as the FDI in the defence was concerned the pre-condition that there had to be state-of-the-art technology too had been done away with. “Besides, the NDA regime has also removed the mandatory condition that the FDI above 49 per cent in the defence sector will be allowed with the approval of the Cabinet committee on security,” Sharma said, adding that the total FDI had fallen from 46.7 billion dollars in 2011 to 31.9 billion dollars.

“Had it not been for the benefit that the government got from the decline in oil process, India could have had balance of payment crisis,” he said.

He said when there had been loss of employment, decline in exports and the gross capital formation was negative with no new industry, how could the economy grow. He said the exports during the last 18 months had declined and the country had a flat growth and it was still not clear how much the economy has benefitted from the Prime Minister’s tour to 36 nations.

Sharma said as far as the GST Bill was concerned, the Opposition had raised some concerns which could be discussed. “In fact the Congress is the author of the GST, but certainly not in its present distorted form and it is wrong on the part of the PM to say that the Congress is being obstructionist,” he said.