National security is the last resort of protectionists

Business Standard reports:

Tata had written to the minister in October on various issues related to Press Note 5, including the suspension of Para 2, which said conditions related to security issues were also to apply to existing telecom operators with an FDI cap of 49 per cent.

The note puts various restrictions on telecom companies with foreign direct investment, on issues such as having foreigners at key management positions and remote access.

With uncertainty prevailing for around two years now, the telecom industry has urged the government to go back to the earlier regime that had an FDI cap of 49 per cent.

Those of us who cried foul when businesses and governments abroad seemed to be against Mittal's bid for Arcelor, should also take a look at our views on foriegners.

Some, however, say being cautious is not protectionism.