Chennai, July 21: DMK president M. Karunanidhi yesterday came down heavily on the centre's decision to hike foreign direct investment (FDI) limits in various sectors, and said it would result in serious consequences, especially in defence production.
In a statement issued here, Karunanidhi said: "The centre's decision will have serious consequences. In particular, defence production will come under the control of foreigners. Further, when the general elections are slated next year, the centre should think whether such serious decisions should be taken."
He said the centre has raised FDI limits in 12 sectors like telecom, defence, insurance, single brand retail and others.
Karunanidhi said in the telecom sector, the foreign partners would say that they would run the operations on their own, while Indian companies will not be able to compete with them.
He said while private telephony companies are about to make profits, government-owned Bharat Sanchar Nigam Ltd has incurred a loss of Rs.8,198 crore for the year 2012-13.
Karunanidhi said the US, UK and Canada had capped foreign investment in telecom at 35 percent.
Opposing the proposed hike in FDI in insurance sector to 49 percent from the current 26 percent at a time when a parliamentary committee has recommended against it, Karunanidhi wondered what the need was for such committees.