37.Insurance FDI: PC to seek BJP support for hiking limit: In an - TopicsExpress

37.Insurance FDI: PC to seek BJP support for hiking limit: In an apparent attempt to forge a consensus on the liberalisation of FDI in insurance sector, Finance Minister P Chidambaram will meet the leaders of Opposition in both Houses — Sushma Swaraj and Arun Jaitley — on Saturday to solicit their support for the legislative approval for the move. The Bill that seeks to enhance FDI limit in the insurance sector has been pending in the Rajya Sabha since 2008 for want of sufficient numbers. A parliamentary standing committee headed by senior BJP leader Yashwant Sinha, in its report, has recommended against hiking FDI limit in the insurance sector from 26 per cent to 49 per cent. The BJP, consequently, has been citing this unanimous report to not support this Bill. The government, however, is keen to get this Bill passed in the forthcoming Monsoon Session starting Monday. On Thursday, the government liberalised the FDI policy in several sectors to attract foreign investment to arrest the decline in the value of rupee against the US dollar. The BJP, which maintains that it was not against the FDI in principle, has opposed FDI in multi-brand retail trade and not come forward to support enhancing the FDI limit in insurance and pensions fund management sector. The Finance Minister in his meeting on Saturday is likely to impress upon the prevailing economic situation and the merits of the move to solicit BJP support. The BJP, however, has attacked the Congress for tweaking the FDI in retail policy, saying that it was done under pressure from MNCs and charged the government of undertaking reckless economic decisions. "The government yesterday eased norms for FDI in multi-brand retail by diluting contentious 30 per cent sourcing clause and allowing foreign chains to set up stores in cities which have population less than 10 lakh.This move comes after specific lobbying by Global Retailers like Walmart and Tesco," said BJP spokesperson Meenakshi Lekhi.

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