CPI(M) critical of increasing foreign capital in Insurance sector

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New Delhi, Oct 31 (UNI) The CPI(M) polit bureau today strongly disapproved the decision of the Union Cabinet to increase the ceiling for foreign capital entry into the Indian insurance sector from the existing 26 per cent to 49 per cent.

The party in a statement issued here said for the last four years this was resisted from being applied by the Left parties on whose support the UPA government depended.

This was based on the understanding that in the interests of the country and its economic fundamentals, the hard-earned life-long savings of the Indian people in the insurance sector should not be put at the disposal of international finance capital that thrives on the basis of speculation. Such an increase in the cap for foreign capital would has resulted in the outflow of Indian people's savings to lubricate speculative profits.

Due to the Left's opposition, India has been able to withstand to some extent the complete onslaught of the current global crisis of international finance capital, the release said.

In the light of the current global crisis, such a decision would be counter-productive and vastly enlarge India's vulnerability to international speculators.

''The Left parties will oppose this move when it comes before the Parliament. The Left parties appeal to all other parties, who have the interests of the Indian people and their economic prosperity in mind, to join in opposition of this move which will only provide greater profits to speculative capital at the expense of the Indian people, the statement added.

UNI BKS SP DS1440

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