Dangerous Course of FDI


I am writing this in response to the statement of the CC of the CGPI entitled `Opening doors wider to Foreign Direct Investment is a Dangerous Coursei: BJP led NDA government is gambling with the fate of our country to serve the imperialist drive of Indian capital to join the global big power club' issued on 16th July, 2014 and carried in the August 1-15, 2014 issue of MEL.

The statement debunks many of the claims of the bourgeois spokesman, the Finance Minister, Shri Arun Jaitley, notable among which is the hollow claim that foreign direct investment is required to fill a capital shortage. Rather, it is a means by which foreign finance capital, which today dominates the world economy penetrates the economies of countries and gains a stranglehold on them. Indeed, Mr. Jaitley has announced that such financiers would now be allowed to hold up to 49% stake in companies, including those producing armaments and military supplies, extending the sectors where such ownership was already permitted by rules framed by the former UPA government. 

The statement correctly points out that such moves have in the past, and will in the future lead to the surrendering of sovereignty of the country. This has been the experience of countries and civilization world over for the last several centuries, viz., the colonial era. Although the form may be different now, the content is the same. The statement provides many examples of how this has happened in the past which is of great educational value to all those interested in the future of the country. While lot of this may be well-known, what is not as well-known is the fact that the Indian bourgeoisie is making many of these moves to enter the club of big powers. It is part of their drive to attain big power status, and gambling with the future of the country, according to them, is a fair stake.

However, it must be kept in mind that the present era is one where the US and its allies continue to dominate the world and use their military and financial might to interfere in the internal affairs of other countries, when they do not outright occupy and directly run the affairs of countries. Given this dangerous situation, one wonders why the Indian bourgeoisie is playing is fire. The answer may be found in the fact that the Indian bourgeoisie itself is an imperialist one, which has a path of contention and collusion with the big powers. Indian capital has the desire to penetrate foreign markets, just as foreign capital has the desire to penetrate the Indian market. India is well nigh on the path of participation in this mad hatter's race of imperialist design and domination. The statement has provided several concrete illustrations of all the features above, citing examples from armament industry, health, insurance, manufacturing, etc.. to name a few. In order to meet their short term goals, the bourgeoisie is risking the long term destruction of the Indian economy.

The way out of this, as pointed out in the statement, is the necessity for change of orientation of the economy. This cannot be achieved by the change of ruling party, but rather through the transfer of the
sovereign power to the hands of the working peoples. The human factor must be brought into the centrestage, which the bourgeoisie is not capable of doing. There is, theref ore, a new historical imperative for the working class to take matters into its own hands. Thus, the social surplus would be deployed for the all round benefit of society. I am writing also to express my concurrence with the conclusions of the statement, which is that the opening up to foreign capital to f oreign capital in the name of filling a capital shortage is bogus, that it gambles with the future of the country, and is against the interests of the people. I am writing to second the call of the CGPIto step up the struggle against globalisation through liberalisation and privatisation, reveral of opening up of the economy, to end the transfer of wealth to private hands, and that the wealth be deployed for every one's well being.


A. Narayan




The statement of the Central Committee of Communist Ghadar Party on the dangerous course of opening the doors of India further to foreign direct investment is very timely. It illuminates the truth, which lies hidden beneath layers of disinformation. It is a wake-up call to all Indians who care about the sovereignty and independence of our country, for which countless patriots have sacrificed their lives. We need to get together and build a force that can halt this dangerous offensive and bring about a change of course.

This statement reminds me of the call given by the Communist International many years ago that the banner of national independence and sovereignty is being trampled in the mud by the bourgeoisie and it needs to be defended and upheld by the proletariat. Communist Ghadar Party deserves to be applauded for defending the cause of India’s independence and sovereignty, which are being placed on the stakes of a dangerous imperialist gambling game by the bourgeois class in power. I hope all communist parties and all progressive, democratic and patriotic organisations and individuals respond to this call and join hands in defence of our motherland and the future of our civilisation.

The conditions on the world scale are demanding a fresh assessment by communists of what needs to be done. Old notions about a distinction between a “compromising” and an “uncompromising” section of the bourgeoisie are no longer compatible with the reality of capitalism and the bourgeois class in our country. The Indian monopoly capitalists are seeking to expand rapidly as a global power and join the exclusive big power club headed by US imperialism. They are neither agents of any foreign power, nor are they anti-imperialist. They are imperialist in their striving and their outlook. This has been brought out very well in this statement.

First the so-called secular party of Indian independence, and now the so-called Hindu nationalist party, are both endangering national sovereignty in the interest of the narrow-minded imperialist pursuit of Indian monopoly capitalists. This kind of blunt statement of fact sounds like the proclamation of that child in Hans Anderson’s story, that the “king is wearing no clothes”. Thank you for uncovering the naked truth, Ghadar Party; thanks for telling it as it is.

Yours sincerely,

Gopal Das



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Indian monopoly    liberalisation    Finance Minister    investment    economy    FDI    Aug 16-31 2014    Letters to Editor    Economy     Privatisation    Rights    


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