Communist Party protests against foreign capital flows into India

Hundreds of members of the Communist Party in India (CPI) rallied against foreign direct investment (FDI) in New Delhi on Monday, claiming that the government’s easing of FDI regulations in the retail sector will hurt domestic industry.

Shouting “Down with Modi!” and “Roll back FDI!” the CPI members angrily voiced their opposition to regulations passed in late 2015 to ease FDI rules in 15 industry sectors including retail, media and agriculture.

According to the CPI, the regulations were approved unilaterally by Prime Minister Narendra Modi without going to a vote in Parliament, and opened up the economy to foreign companies that will squelch local industry.

“The license to loot comes at a time when the majority of Indian people continue to groan under newer economic burdens,” said the CPI in a statement, explaining that the price hikes of essential commodities and economic hardship endured by farmers will only increase with the new foreign competition.

Though Modi has come under fire for switching his position after firmly backing protectionist policies two years ago, some economists have hailed the changes as steps towards making India an export hub in Asia.

“If Modi succeeds... the Indian experience could serve as a model for other emerging economies,” notes public policy thinktank the East Asia Forum.