Forum of people’s organisations take the issue up with Prime Minister

A forum of people’s organisations, including that of insurance employees, have written a letter to Prime Minister Manmohan Singh demanding that the proposal to raise the cap on Foreign Direct Investment (FDI) in the insurance sector from 26 per cent to 49 per cent be shelved in the interest of policyholders and the national economy at large.

They have expressed the fear that the increase in the FDI limit will allow foreign capital to gain greater access and control over the massive pool of domestic savings.

Releasing a copy of the letter in a press conference here on Friday, MLC K.S. Lakshman Rao said banks and insurance companies played a crucial role in the economic growth and they needed to be in the government sector for protecting public interest.

Indian economy could withstand the shock of global recession because of the resilience of insurance companies and banks, which happened to be in the public sector.

  • Move allows foreign capital to gain greater access and control over domestic savings

  • Banks and insurance companies should be in the government sector, says MLC