The decision to allow FDI in pension funds will jeopardize the savings of millions of employees in the country.The Polit Bureau appeals to the people to oppose these anti-people measures. The PB also appeals to political parties to defeat these measures when they are brought before parliament.
That the government is bent upon promoting FDI in retail at the cost of domestic interests is clear from the dilution of the conditions set for FDI in single-brand retail. Earlier, the rule was that for FDI above 51 per cent in single brand retail, there was a mandatory sourcing of at least 30 per cent of the value of products sold from Indian “small industries/village and cottage industries”. Now this has been diluted. It is stated that instead of mandatory sourcing it is “preferably” from small and medium enterprises etc. Further, the definition of small industries has also been done away with.
The Bill will provide the legal backing for putting the pension funds into the stock market. This neo-liberal measure is being undertaken despite the pension funds in Western countries being badly hit by the 2008 financial crisis. Many employees found their pension benefits being sharply curtailed.
Allowing industrial houses to own banks would allow them to corner bulk of the credit for their own businesses through connected lending. It will be impossible to assess risks and regulate the banking sector in such a scenario. Moreover, it will further the concentration of financial power and political influence. It is for these reasons that many countries, including the United States, prohibit industrial houses from operating banks. South Korea prohibited industrial houses from promoting new banks following the financial crisis in 1997.
The Polit Bureau of the Communist Party of India (Marxist) expresses its strong disapproval of the unjustified concessions given to MNCs to set up new units in the same field of business without approval of their Indian partners. The announcement made by the Department of Industrial Policy and Promotion even allows MNCs to change their Indian partner unilaterally.
The Left parties have consistently opposed the entry of foreign companies into retail trade. A wide spectrum of political parties, retail trade associations and public opinion is against such a move.The UPA government should desist from allowing FDI in multi-brand retail trade.