BJP slams liberalisation of FDI as panic reaction

In what would raise hopes of the government,the JD(U),the estranged ally of the BJP,appeared to be flexible on the issue,citing the fact that it was the NDA regime which had made a pitch for insurance sector reforms. “The party has not internally discussed the matter. We will do so before reaching a conclusion. This is a proposal which emanated during the NDA regime and has been pending since then. The JD(U) was very much part of the NDA government then. Besides,all such proposals must be viewed contextually and in relation to our economic compulsions. No one can be unmindful of the need to bring the current account deficit down and catalyse inward flows,through the more stable FDI route,” said JD(U) MP N K Singh.

The divergent positions of former alliance partners in the opposition camp may provide some comfort to the Congress in its bid to seek parliamentary approval for its decision to enhance FDI limit in the insurance sector from the existing 26 to 49 per cent.

“These panic decisions are not going to impact the Indian economy which has reached a terminal state. When Indians themselves are not investing here,why would foreigners put in their money?” BJP deputy leader in Rajya Sabha Ravi Shankar Prasad said at a press conference. While avoiding to point out the BJP’s position on each sector for which the government plans to liberalise FDI norms,Prasad singled out telecom and insurance sectors in particular to signal the party’s opposition. “We are opposed to the hike in FDI limits in insurance and telecom sectors because our core concerns have not been addressed by the government. The Standing Committee unanimously recommended 26 per cent ceiling for FDI in insurance. Why this panic reaction?” Prasad said.

The BJP sought to blame the UPA government for bringing the economy to such a brink. “They ignored us on the issue of FDI in retail trade,what has happened thereafter? Why is it that investors are wary of India? That is the fundamental question to which the government is not responding,” Prasad said.

Left calls it bankrupt policy

New Delhi: The Left parties Wednesday lambasted the government for ‘mortgaging’ the economy to foreign capital by raising the FDI cap in several sectors and demanded withdrawal of the decision. “This bankrupt policy of the government is motivated by the need to attract more foreign capital flows to meet the widening current account deficit. But the supine attitude of the government to foreign capital is only going to lead to further flow of profits and resources out of the country,” the CPM politburo said in a statement. The CPI said the move to hike FDI cap was “a disastrous and desperate measure taken by the Congress led government”. PTI