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Prime Minister Narendra Modi's government may face opposition from within the Rashtriya Swayamsevak Sangh (RSS) over its reported plan to raise the foreign direct investment (FDI) cap in defence.
The Swadeshi Jagaran Manch (SJM), a Sangh organisation, is planning to "make its concerns and opposition known" to the government once the administration comes out with a discussion paper on this.
"There are conflicting reports on this (FDI issue) in the media. We have concerns about allowing 100 per cent FDI in defence. Our request to the government is: do not act in haste. We also urge the government to institute a study on the impact of FDI on employment, technology upgradation and job creation. It should also take into account experiences of other countries," said SJM Convener Ashwini Mahajan.
He hoped Modi would keep his promise during election campaigning of a review of the FDI policy. According to Mahajan, the government should first bring out a White Paper on the issue. "We will come out with a structured response once the government spells out its policy," he added.
In a resolution after a two-day national council meeting that ended on June 1, the SJM said, "FDI and foreign institutional investment (FII) have done more bad than good for the country. We find that in 1992-93, the total outflow of foreign exchange in interest, profits, royalties and salaries was $ 3.8 billion, which increased to $31.7 billion in 2012-13. The inflow of FDI has been only $26 billion in 2012-13."
Although the SJM has been vocal against FDI, there is lack of clarity within the Parivar over the issue. RSS ideologue and SJM leader S Gurumurthy tweeted, "FDI in defence actually makes India, the biggest buyer of arms in the world, less dependent outside." In a subsequent tweet, he added, "100% FDI in any sector should be the exception. It has to be sub-sectorised. The consideration is national interest and not inward forex."
Addressing an event in New Delhi recently, Ram Madhav, the Akhil Bharatiya Sah Sampark Pramukh, had said the RSS had "no problems with the 100 per cent FDI in defence". He added the RSS's "broad line" was to protect the country's economic sovereignty and it was for the government to decide on the specifics.
"We are not economic fundamentalists. The RSS is of the view that it is the government which should be making the decisions about what economic policies are good for the country," Madhav was quoted as saying by an RSS website.
"It is about economic sovereignty. The question is whether we will take decisions about what is good for the country or these decisions will be taken by other countries," Madhav had told the Press Trust of India recently.
Asked about divergent views within the Parivar, Mahajan said Gurumurthy did not participate in the SJM's latest national meeting. Sources said the SJM had conveyed its "reservations" about Madhav's statement to the RSS, which had asked it to prepare "a concrete response" to the issue.
It is unlikely that the SJM will launch "strong agitations" against the Modi government even if it goes ahead with its plan.
"The victory in the recent elections was as much due to the Sangh Parivar as it was due to the Bharatiya Janata Party or Modi. We cannot embarrass the government or create hurdles for it. But at the same time we cannot concede ground," said an RSS leader who did not wish to be named.
