CPI(M) General Secretary Prakash Karat today claimed that reliance on Foreign Institutional Investment was 'harmful' to India because the FII flow 'demands constant concessions' to the investors.
"The argument now is over FII.... It's actually a speculative capital. The money comes in and goes out, so you (government) have to constantly give concessions to investors and go on giving them more and more to lure them, which is harmful to the country," Karat said here.
He was replying to a query on Union Finance Minister P Chidambaram's proposal to follow international practice on FDI and FII.
"We are losing a lot of money in taxes because they (government) are not willing to antagonise the speculative capital from abroad. So this whole dependence on FII flow is neither going to help nor lead to any productive activity in India," Karat added.
Promising the people that the left parties would work for a "clean and people-friendly" government if they come to power, Karat said "We want that people should get jobs, food at reasonable price, basic needs and curbing 'unprecedented corruption.
