DMK leader M. Karunanidhi said the Centre’s decision to promulgate an ordinance to hike Foreign Direct Investment (FDI) cap in the insurance sector to 49 per cent from 26 per cent was not only a blow to Indian economy, but also against Parliamentary democracy.
Recalling his earlier remarks that divestment of public sector shares and allowing participation of private sector in Defence were a retrograde step, Mr Karunanidhi said the ordinance for allowing FDI hike in insurance was unjustified.
“The Parliament select committee has placed its report in the House and no debate has been initiated on the subject. Promulgating ordinance at this juncture is not acceptable,” he said.
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Mr Karunanidhi said while the BJP opposed increasing the cap on FDI in insurance sector when it was in the Opposition, its decision to allow the same now when in power would set a wrong precedent.
He urged the President not to give his assent to the ordinance.