Govt should protect weak Indian firms from foreign takeovers: Rahul Gandhi

Former Congress President Rahul Gandhi on Sunday (April 12) said that the economic slowdown has weakened Indian corporates and urged the government to ensure that no foreign interests take control of any such corporate at a time when the country is fighting the COVID-19 crisis.

Gandhi’s remark comes on a day when the People’s Bank of China (PBOC) purchased 1.01 per cent stake in the mortgage lending major Housing Development Finance Corporation (HDFC). The central bank of China has acquired nearly 1.75 crore shares in HDFC during the quarter ended March.

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“The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers. The government must not allow foreign interests to take control of any Indian corporate at this time of national crisis,” Gandhi tweeted.

The massive economic slowdown has weakened many Indian corporates making them attractive targets for takeovers. The Govt must not allow foreign interests to take control of any Indian corporate at this time of national crisis.

— Rahul Gandhi (@RahulGandhi) April 12, 2020

The World Bank on Sunday (April 12) said the coronavirus outbreak has severely disrupted the Indian economy, magnifying pre-existing risks to its outlook. In its South Asia Economic Update: Impact of COVID-19, the World Bank estimated the Indian economy to decelerate to 5 per cent in 2020 and projected a sharp growth deceleration in fiscal 2021 to 2.8 per cent in a baseline scenario.

The International Monetary Fund too warned of a global recession, and said the pandemic is causing an economic crisis.

(With inputs from PTI)