Former Defence Minister AK Antony, who was opposed to increasing the FDI limit from 27 per cent during his tenure, on Monday criticised the Government decision to hike the limit and said it “poses a big threat to India’s independent foreign policy.”
The Congress also went on to say that the FDI reforms were a “panic reaction” with its spokesman Jairam Ramesh asserting it would not have come about had Raghuram Rajan not announced his decision on Saturday to exit RBI as Governor.
Reacting to the raising of FDI limit, Antony said, “It’s immediately after Prime Minister Narendra Modi’s US visit, central government brought sweeping changes in the FDI policy. The move poses a big threat to national security and India’s independent foreign policy. Allowing 100 % FDI in defence sector means India’s defense sector is thrown mostly into the hands of Nato-American defense manufacturers.”
Besides impacting foreign policy and national security, Antony said it will have an adverse impact on the ongoing indigenous defense research activities in the country. “It is very important to note that all such changes happen immediately after PM Narendra Modi’s recent American visit,” the senior Congress leader charged.
The longest serving defence minister of independent India claimed the joint statement issued by Modi and Obama resembles like India has become a security partner of America.
Condemning the decision, Antony said the decision will “naturally affect India’s relations with its natural friendly countries. He urged the Modi government to withdraw the decisions as it affected “national interest.”