Strongly opposing the opening up of 12 key sectors, including defence, to foreign direct investment, Telugu Desam Party said on Wednesday the United Progressive Alliance government's move would further drive domestic investors out of the country and jeopardise the national economy.
"By opening the doors (for foreign direct investment) wide open, United Progressive Alliance government is mortgaging India's sovereignty to foreign multinationals.
The economic growth rate slipped to a decadal low of just five per cent under the leadership of (Prime Minister) Manmohan Singh and (Planning Commission Deputy Chairman) Montek Singh Ahluwalia," TDP politburo member and Leader of Opposition in Legislative Council Yanamala Ramakrishnudu said in a statement on Wednesday.
With the hike in bank rates to 20 per cent, domestic industrialists are finding it hard to secure funds and hence they are going to countries like Singapore and Oman, he claimed.
The domestic industrial sector was already reeling under the impact of economic slowdown, rise in interest rates and the nine per cent power deficit and FDI would only compound its misery, he pointed out.
"The cap on FDI in retail has been totally removed, while the limit in insurance sector has been enhanced to 46 per cent.
"These are retrograde steps.
"Also, raising the FDI limit to 49 per cent in refining sector is a matter of concern at a time when price of diesel and petrol have been hiked 24 and 34 times respectively in the last nine years," he noted.
Vexed with the unfriendly policies of the UPA government, Indian industrialists were moving away to countries like Singapore, Oman, Bangladesh and East Asia where they are being widely welcomed.
"The UPA government is driving the Indian industrialists out of the country through its anti-industrial policies," Yanamala said.
If the incentives that are being offered to foreign companies are offered to Indian industrialists, they will continue to invest in the country and help in the economic growth besides protecting our sovereignty, he said.