Insurance and pension get FDI boost, need parliament nod

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Express news service :New Delhi, Oct 05 2012, 01:24 IST

The UPA government, as anticipated, approved a series of legislations Thursday to raise the cap on foreign investment in the insurance sector and allow FDI in pension funds, among others. But even as the latest decisions aimed to sustain the pace of reforms unleashed last month, the government pinned its hopes on adroit political management and its ability to secure the BJP’s support for the moves to clear parliament.

“We will reach out to all political parties, especially the principal opposition party, to get the reforms bills passed,” Finance Minister P Chidambaram told reporters after the cabinet gave its nod to raise FDI in insurance to 49 per cent from 26, and allow at least 26 per cent foreign investment in pension funds. The cabinet also cleared amendments to the Forward Contracts (Regulation) Amendment Bill, 2010, the Companies Bill and Competition Act.

The decisions follow the government’s move last month to raise the price of diesel, limit LPG subsidies, allow FDI in multi-brand retail and open up the civil aviation sector to foreign airlines. Those decisions encountered stiff opposition from the Trinamool Congress and opposition parties and caused Mamata Banerjee to quit the UPA coalition.

While accepting that Thursday’s bills would have to pass muster in parliament, Chidambaram maintained that he had no reason to feel the reforms measures would not be supported by other parties. “I don’t think we should jump to conclusions at this stage. Now that the cabinet has passed the amendments to the legislations, we will be seeking

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Reader's Comments (3)| Post a Comment

FDI In Retail

S.S.Vinekar | 05-Oct-2012Reply | Forward

There are more consumers than sellers in Retail Trade in India. If the consumer benefits by FDI in Retail and at the same time the producer gets his profit why there is a thoughtless opposition? Earlier introduction of Computers was opposed because of fear of creating unemployment. But this opposition has been proved wrong.We have to compete in this world and adopt more organised method of retail trade which will fetch more revenue to Government by Sales Tax which is now being evaded by the local traders in Retail Trade.Local politicians will find it tough to extort more election funds from established retail trade companies and will curb corruption at grass root level and eliminate middle men.Our Opposition parties like TMC,BJP,CPM must think in the interest of the majority rather than protecting the minority traders and middlemen who fleece the consumers.

Insurance and pension get FDI boost, need parliament nod

B K Nandi | 05-Oct-2012Reply | Forward

Sonia Gandhi has been using Monmohan Singh for the her dynasty rule. Reform is the last use of him. It would have been better if PM would have resigned on CAG report. Instead dynasty congress thought of using for the last time in the pretext of his favorite subject reform and same time divert attention from a chain of scams and corruption. 1991 reform is a failure, dynasty congress could not convince people on reform, UPA government output are scams, corruption, loot etc, UPA could not give good governance and now they are imposing some punishments. Dynasty congress could not prove themselves, how people will trust them, how people will believe them that dynasty congress has merit to execute the reform properly. Dynasty congress is not only fooling people, they are bringing misery to the people of India.

FDI

Mishra | 05-Oct-2012Reply | Forward

Very sad day for India. These irresponsible politicians are selling the country. No one (I mean general public) seems to care. Are we not politically conscious any more? Walmart, Insurance, Pension what else? We already sold and lost our soul on cultural , educational, spiritual, economic, political and moral issues. We have lost our independence again. We need to ask the political parties if they are going to overturn these decisions when they come to power? Voting decisions should be based on that alone. Need to have strong, sincere, decisive and forward looking people in power. Current generation of politicians can't deliver it. Youth needs to get involved and set India free from these corrupt politicians.