Millennium Post

BJP to oppose FDI in insurance and pension, questions timing

New Delhi: As the government raised the Foriegn Direct Investment (FDI) cap in insurance sector, the Bharatiya Janata Party (BJP) on Wednesday  made it clear that they would oppose an such move and would not support the government on increasing the FDI cap in insurance and pension sector.

The government had increased the FDI limit in insurance sector from 26 per cent to 49 per cent on Tuesday, opposing the increase in insurance sector the BJP said the matter is already with the Parliamentary Standing Committees and an understanding had been reached- in which Congress was also a party- that the limit should be 26 per cent. ‘Then why this panic reaction,’ said BJP leader Ravi Shankar Prasad.

Criticising the move the BJP said that the  decision to increase FDI cap in telecom and insurance sectors, came  at a time when the economy is going downhill and the party sought to know if it was a fallout of Finance Minister P Chidambaram’s US visit. BJP alleged that Chidambaram was reprimanded by the investors in US for the problems with the Indian economy. ‘His roadshow in Japan was a complete failure, why is this government making the economy only FDI driven?’ asked Prasad.

The party predicted that these measures are not going to prove successful in bringing FDI to the country.  ‘FDI in telecom sector has been increased from 74 per cent to 100 per cent. 74 per cent is a dominant investment. If at 74 per cent India is not able to get foreign investment then how can one expect this at 100 per cent,’ said Prasad.

The BJP leader said  that the Indian economy is in a bad shape and when even the Indian investors are not putting their money here, why will the foreign investors invest their dollars.

‘The panic decision taken by the government on FDI is not going to impact the Indian economy which is indeed in a terminal state.

The story of India has come under a serious cloud under the leadership of Sonia Gandhi and Prime Minister Manmohan Singh,’ said Prasad.
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