The Hindu : National : “It will increase India’s vulnerability to global crisis”

Online edition of India's National Newspaper
Saturday, Nov 01, 2008
ePaper | Mobile/PDA Version

National

National

“It will increase India’s vulnerability to global crisis”

Special Correspondent

NEW DELHI: The Communist Party of India (Marxist) on Friday disapproved of the Union Cabinet’s decision to increase the ceiling for foreign capital entry into the Indian insurance sector. The move would be counterproductive and enlarge India’s vulnerability in current global crisis, it said.

In a statement, party Polit Bureau said the move to increase the ceiling from 26 to 49 per cent was not allowed by the Left parties on whose support the UPA government depended. The Left’s opposition was based on the understanding that in the interest of India 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 would have resulted in the outflow of Indian people’s savings to lubricate speculative profits. Because of 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 statement noted.

“In the light of the current global crisis, such a decision would be counterproductive and vastly enlarge India’s vulnerability to international speculators,” the CPI(M) said adding that the Left parties will oppose this move when it comes before Parliament.

It said the Left parties appeal to all other parties who have the interests of the Indian people and their economic prosperity to join this move, which will only provide greater profits to speculative capital at the expense of the Indian people.

Printer friendly page
Send this article to Friends by E-Mail

National