The second stage of the Government’s big reform steps, particularly Parliamentary clearance to FDI in pension and insurance sectors, is likely to face tough opposition from both its friends and foes.
As the standing committee on Finance had adopted reports recommending status quo on FDI in both the sectors, it would be difficult for the Government to convince its allies and supporters.
The second largest partner in the UPA, the DMK, was conspicuous by its absence at Thursday’s Cabinet meeting. The party’s lone Minister in the Cabinet, M.K. Alagiri, chose not to attend the meeting. The DMK was opposed to FDI in pension and insurance sectors.
A key party functionary said party chief M. Karunanidhi will announce the party’s views on the issues soon. The NCP and the National Conference have been supporting the Government on reforms. A section of the Congress has also expressed unhappiness for pushing reforms at the “fag end” of the UPA-II’s tenure.
The main outside supporter of the Government, the Samajwadi Party, is also angry with the decisions. The party termed the move as “anti-national.”
“The SP has been opposing these anti-national moves to bring FDI in insurance and pension sectors. Our leaders will decide the next course of action,” the party General Secretary Mohan Singh told Business Line .
BSP sources said they will discuss the development in their meeting scheduled on October 9 at Lucknow. The Trinamool Congress had made it clear that it is planning to bring a no-confidence motion against the Centre in the winter session.
The principal Opposition party, the BJP, said enough provisions should be there to safeguard the interest of the people. Party spokesperson Prakash Javadekar said it was the NDA which proposed 49 per cent FDI in insurance 10 years ago. He said the BJP was not opposed to the FDI in insurance and pensions.
BJD leader Bhartruhari Mahtab said the Centre should ensure a minimum assured sum of return to pensioners. He said the party is standing by the Parliament finance panel’s reports on both the issues.
The Left parties said the Government is rolling out the red carpet to FDI at the peril of the people. CPI MP Gurudas Dasgupta said nobody has a right in the country to divert employees’ and workers’ savings to stock markets for earning speculative gain.