An ideological ally of India’s ruling Bharatiya Janata Party (BJP) has been opposing FDI and giving any kind of “red carpet welcome and giving undue benefit” to foreign investors saying it “makes India poorer”.
Ashwani Mahajan, Chief of Swadeshi Jagaran Manch, the economic affiliate of Rashtriya Swayamsevak Sangh (RSS) has come out openly against the Modi government’s plans and instead wants the government to encourage remittances by the Indian diaspora.
According to a new report by the International Organisation for Migration – an intergovernmental organisation affiliated with the United Nations, India was the top recipient of remittances from 2010 to 2018. In 2018, India received $78.61 billion in remittances, followed by China ($67.41 billion).
On the other hand, FDI inflow during the first quarter of the last fiscal year was just $12.75 billion, while it was $16.33 billion during the same period in the current fiscal year.
“The Indian diaspora sends more money to India than FDI and FII taken together, that too without any expectations or owning assets", commented Mahajan.
“FDI is not a panacea for all ills. It is not a solution to all problems. FDI has done more bad than good for the economy", Mahajan had said on an earlier occasion.
Swadeshi Jagaran Manch or Forum for National Self-Reliance has been consistently opposing the federal government’s plans to raise funds from abroad, like foreign currency bonds, as announced in the Budget Proposals for 2019-20.