Haridwar: Accusing the Congress-led United Progressive Alliance (UPA) Government of behaving like an agent of overseas companies by allowing FDI in multi-brand retail, yoga guru Baba Ramdev has threatened to launch a nation-wide agitation in favour of domestic companies on October 02, the birth anniversary of Mahatma Gandhi.

"We will launch a Swadeshi Movement to promote and consume indigenous domestic products in 650 districts across the country on October 2, because this government is acting like an agent of foreign companies," said Baba Ramdev.

He further claimed that Prime Minister Manmohan Singh was under the influence and pressure of America and foreign companies but with no concern for the people of his own nation.

"The pressure of America and foreign companies is evident on him (Prime Minister Manmohan Singh). He doesn’t care about people of this country," added Baba Ramdev.

Earlier, the Prime Minister supported the government’s move to allow FDI in retail, saying it would not hurt small traders and that the apprehensions that small retailers would be destroyed were unfounded.

The government made the decision to allow FDI in multi-brand retail market of the country on September 14, paving the way for multinational companies such as Wal-Mart and Carrefour to enter domestic market.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Dr Manmohan Singh, decided to allow up to 51 percent FDI in multi-brand retailers and aviation.

Despite the backlash, the government pressed ahead with more reforms, slashing a tax on overseas borrowing by Indian firms and implementing a scheme to encourage individuals to invest in the stock market.

The cabinet may also approve measures next week to allow greater foreign investment in the insurance sector.