DELHI: 03 June 2014

The Social Democratic Party of India, (SDPI) has dissented the Narendra Modi-led Union Government’s move of 100 per cent FDI (Foreign Direct Investment) in defense and called for to review it.

Opposing the move, SDPI national president A. Sayeed in a statement said that by increasing FDI in defense it would be like compromising safety and security of the nation. He said it is a myth that FDI hike will bring transfer of technology to Indian companies, as there is a ‘Technology Denial’ regime which does not permit developed world to transfer defense technology.

Sayeed said that with FDI in telecom had been hiked to 100 percent by the previous UPA Government, the security implications for the nation are already in jeopardy. Now, 100 per cent FDI in defense is going to add salt to wound and put the nation further at risk as in today’s world defense is heavily reliant on telecom system.

He said that the centre’s decision will have serious consequences as defense production will come under the control of foreigners. Defense production is not any other industry of the economy. Sadly, the current government is all about making money and doing good business deals. Defense requires special handling and clearly this policy doesn’t reflect that; he added.

Sayeed hoped the Union Government will have second thoughts over the move of 100 per cent FDI in defense and thereby not compromise with the security of the nation.