The Hindu : Andhra Pradesh / Hyderabad News : CPI critical of government move on FDI

Online edition of India's National Newspaper
Sunday, Feb 03, 2008
ePaper | Mobile/PDA Version

Andhra Pradesh

Andhra Pradesh - Hyderabad

CPI critical of government move on FDI

Special Correspondent

HYDERABAD: The Communist Party of India has expressed serious concern over the Centre’s move to enlarge the scope of foreign capital by allowing foreign direct investments into oil, aviation and commodities markets.

Terming the move as “outrageous,” the CPI said allowed FDI into more areas reflected the government’s “right shift” that would further deteriorate the living standards of the common man. While the oil sector was already dominated by one Indian company, the decision to invite FDI into the sector would allow the monopolistic tendencies to rise.

CPI leader Gurudas Dasgupta said the government which failed to control prices and strengthen the public distribution system had decided to allow FDI into commodities market that would help trans-national companies to stockpile food grains and create scarcity.

“This is nothing but State-sponsored development of capitalism with collaboration from foreign capitalists,” he told reporters here on Saturday.

Mr. Dasgupta questioned the need for FDI when there is sizeable volume of foreign exchange reserves and the rupee appreciating.

The government could, instead, consider domestic resources to meet the capital requirements.

Terming the present tax regime as regressive, he said the government should introduce a tax system paving way for collection of higher taxes from high-income people. The taxes in service sector should be higher and the government should collect a larger proportion of turnover tax in the booming stock market where the small investors were, however, losing.

The CPI would mount pressure on the government to introduce a “people’s budget” in the Parliament with an outlay of Rs. 10 lakh crore and a majority of the amount should be utilised to develop social infrastructure.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh