BJP cautions UPA not to raise FDI limit in insurance

BJP leaders are of the opinion that standing committee on finance has already recommended 26%FDI 

Gyan Varma / New Delhi Sep 24, 2012, 11:09 IST

The United Progressive Alliance (UPA) government is on a spree to bring crucial economic reforms but the Bharatiya Janata Party (BJP) has cautioned the union government not to raise the limit of foreign direct investment (FDI) in the sectors related to insurance, banking and pension reforms and the government should follow the recommendations of the standing committee on finance. 

Senior BJP leaders are of the opinion that standing committee on finance has already recommended 26% FDI in Pension Fund Regulatory and Development Authority (PFRDA) Bill and Insurance Bill and the union government should not raise it to 49%

 cent because even the members of the Congress party, who are part of the standing committee on finance are of the opinion that the FDI limit should remain at 26% cent.

  “The standing committee on finance has sent recommendation on one pattern so that FDI limited remains at 26% but if the union government decides to change it that it would not be beneficial. The former finance minister Pranab Mukherjee had already 

 agreed to follow the recommendations of the parliamentary committee, so the government should not go back on the commitment,” said a senior BJP leader. 

 Senior leaders of the BJP are also hopeful that the two Bills will not be passed in the Parliament if the government decides to raise the limit of FDI from 26% to 49 per cent because the UPA doesn’t have the required numbers in the house. 

 West Bengal chief minister Mamata Banerjee has already threatened to ask for a debate in the Parliament on the issue of allowing FDI in multi-brand retail to further embarrass the UPA government. Although BJP led National Democratic Alliance (NDA) has 

 not made a similar demand yet, the party will support Banerjee’s demand so that it is able to put pressure on Samajwadi Party (SP) and Bahujan Samaj Party (BSP) to stand against the government on the floor of the house. Both the Uttar Pradesh based parties 

 are supporting the government but they are against allowing FDI in multi-brand retail.