Mumbai: The economic wing of the RSS – the Swadeshi Jagran Manch – does not think too highly of the Modi government’s proposal to raise money in the international market by selling foreign currency bonds.
The Manch, using rather strong language, said the move was anti-patriotic as it could create long-term risks for the economy, potentially allowing rich foreign nations and their financial institutions to dictate the country’s policies, Reuters said in its exclusive report.
“We can’t allow this to happen,” declared Ashwani Mahajan, the co-convenor of the Swadeshi Jagran Manch.
Vowing to campaign against the plan by convening meetings of influential economists, Mahajan said: “We are confident that the government will withdraw its decision on these bonds.”
“We must look at the experience of countries that have taken loans from international markets to meet their government deficit. The experience of these countries has been far from good,” he said, citing Argentina and Turkey as examples, adds Reuters.
Mahajan said going overseas to borrow may also mean that the rupee currency will depreciate at a faster rate and allow foreign governments to demand tariff reductions. A Finance Ministry spokesman declined to comment for this story, the wire agency said.