Strongly opposing the Centres move to increase FDI in the insurance sector as well as open up pension funds to FDI,Tamil Nadu Chief Minister and AIADMK chief J Jayalalithaa has charged that insensitive to the suffering of the common people,the UPA government was trying to divert public attention from the mammoth corruption charges it has been facing.
This move at best is a gimmick and at worst an unworthy risk. The act of disguising harmful decisions and promoting them under the name of grand reforms amounts to deceiving the people of the country. No amount of rhetoric will change the truth, said Jayalalithaa Saturday,holding that it was premature to conclude that these apparent big-ticket reforms would accelerate growth and boost the sagging economy.
In the case of increasing FDI limit in insurance sector from 26 to 49 per cent,it would be operational only if the relevant Bills Pension Fund Regulatory & Development Authority (PFRDA) Bill,2011,and Insurance Law (Amendment) Bill,2008 were passed by both Houses of Parliament where the UPA faces a number crunch. With the 26 per cent FDI itself failing to generate any appreciable result,hiking it to 49 per cent against a parliamentary committee recommendation would prove disastrous,she said.
The proposal to allow FDI in pension funds and there by channelling the savings of the elderly into the risky and unpredictable capital market would place the future of the senior citizens at tremendous risk,argued Jayalalithaa.
The UPAs latest FDI flag is diversionary more to anaesthetise the mammoth corruption charges against the government especially when elections seem imminent, said the Tamil Nadu CM in a statement.
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