Mumbai: "Foreign Direct Investment (FDI) in aviation and telecom sectors is potential threat to national security," a secret paper submitted by Joint Intelligence Committee (JIC) to Union Home Ministry in September 2008 stated. The Union government has overlooked the paper while approving FDI and framing its rules.
The secret paper, a copy of which is with India Today, draws attention to threats associated with foreign participation in the economy. It categorically mentions that in India the only guideline, which touches upon security aspects, is the FEMA notification issued in 2000 that prohibits FDI from Pakistan and Bangladesh. "No other country is mentioned."
Security experts believe that China is a bigger threat than Pakistan. The paper broadly focuses on national security threats arising out of FDI inflow, mergers and acquisitions, Sovereign Wealth Funds (SWF) and public private partnerships. It takes into account references from PMO on "FDI in sensitive areas and industries" and "enhancement of FDI limit in telecom sector".The paper mentions that flow of unverifiable investments from tax havens like Mauritius, Cyprus, Cayman Islands and from criminal groups operating from outside pose a security threat to the economy.
12/10/12 Kiran Tare/India Today
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The secret paper, a copy of which is with India Today, draws attention to threats associated with foreign participation in the economy. It categorically mentions that in India the only guideline, which touches upon security aspects, is the FEMA notification issued in 2000 that prohibits FDI from Pakistan and Bangladesh. "No other country is mentioned."
Security experts believe that China is a bigger threat than Pakistan. The paper broadly focuses on national security threats arising out of FDI inflow, mergers and acquisitions, Sovereign Wealth Funds (SWF) and public private partnerships. It takes into account references from PMO on "FDI in sensitive areas and industries" and "enhancement of FDI limit in telecom sector".The paper mentions that flow of unverifiable investments from tax havens like Mauritius, Cyprus, Cayman Islands and from criminal groups operating from outside pose a security threat to the economy.
12/10/12 Kiran Tare/India Today
