Govt introducing insurance FDI bill to show reform intent
Insurance reform bill will remain a statement of pro-reform intent.
By ET Bureau |
NEW DELHI: The insurance reform bill cleared by the Cabinet will remain a statement of pro-reform intent. The BJP as well as the Left on Friday ruled out any backing for the bill that seeks to raise quantum of FDI from 26% to 49%. At a press conference here, finance minister P Chidambaram himself said that the bill was unlikely to be passed in Parliament due to lack of time.
But response from Opposition clearly indicated that there will not be adequate political support for its passage. The legislation is being introduced in Rajya Sabha, which ensures that it will not lapse.
The BJP has already said the government has no legitimacy to act on important legislations. Although the party was initially supportive of the legislation, the worsening relations between the two sides after the trust vote have virtually left no space for negotiations.
The latest statement of intent is politically prohibitive for the Congress for another reason. For, it has further widened the distance between it and the Left.
The ���deviations��� both in economic and foreign policy���will put more hurdles before any further political engagement between the two parties.
The CPM on Friday hit out against the decision of the government. ���For the last four years this was not allowed to be done by the Left parties on whose support the UPA government depended.
This was based on the understanding that in the interests of India and its economic fundamentals the hard earned life long savings of the Indian people in the insurance sector should not be put at the disposal of international finance capital that thrives on the basis of speculation.
Such an increase in the cap for foreign capital would have resulted in the outflow of Indian people���s savings to lubricate speculative profits. Because of the Left���s opposition India has been able to withstand, to some extent, the complete onslaught of the current global crisis of international finance capital,��� a statement from the CPM polit bureau said.
It also said in the light of the current global crisis, the decision would be counter-productive and ���vastly enlarge India���s vulnerability��� to international speculators. ���The Left parties will oppose this move when it comes before Parliament.
The Left parties appeal to all other parties who have the interests of the Indian people and their economic prosperity in mind to join in opposition of this move which will only provide greater profits to speculative capital at the expense of the Indian people.���
But response from Opposition clearly indicated that there will not be adequate political support for its passage. The legislation is being introduced in Rajya Sabha, which ensures that it will not lapse.
The BJP has already said the government has no legitimacy to act on important legislations. Although the party was initially supportive of the legislation, the worsening relations between the two sides after the trust vote have virtually left no space for negotiations.
The latest statement of intent is politically prohibitive for the Congress for another reason. For, it has further widened the distance between it and the Left.
The ���deviations��� both in economic and foreign policy���will put more hurdles before any further political engagement between the two parties.
The CPM on Friday hit out against the decision of the government. ���For the last four years this was not allowed to be done by the Left parties on whose support the UPA government depended.
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This was based on the understanding that in the interests of India and its economic fundamentals the hard earned life long savings of the Indian people in the insurance sector should not be put at the disposal of international finance capital that thrives on the basis of speculation.
Such an increase in the cap for foreign capital would have resulted in the outflow of Indian people���s savings to lubricate speculative profits. Because of the Left���s opposition India has been able to withstand, to some extent, the complete onslaught of the current global crisis of international finance capital,��� a statement from the CPM polit bureau said.
It also said in the light of the current global crisis, the decision would be counter-productive and ���vastly enlarge India���s vulnerability��� to international speculators. ���The Left parties will oppose this move when it comes before Parliament.
The Left parties appeal to all other parties who have the interests of the Indian people and their economic prosperity in mind to join in opposition of this move which will only provide greater profits to speculative capital at the expense of the Indian people.���
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