Continuing the proposals for 100% FDI in Defence and Railways, the Modi Government is focussing attention for increasing the FDI in Insurance. At present FDI in Insurance sector in 26%. The proposal is to increase it to 49%.

A meeting was held between the Secretary, Department of Financial Service G.S.Sandhu with the private insurance companies, who demanded that the FDI be increased.

It is to be remembered that during the UPA-II government, the Parliamentary Standing Committee on Finance chaired by BJP Leader Yaswant Sinha had recommended that there is no case for increase of FDI in Insurance. The Unions in the insurance sector, Left Parties and others have strongly objected to the increase.

It is not easy to take the decision on the increase of FDI in Insurance Sector. The decision will have to be taken in the Parliament. While there is good majority in the Lok Sabha, the BJP/NDA is in minority in Rajya Sabha.

The move to increase FDI in insurance sector is unwarranted. It is intended to take over the Life Insurance Corporation of India and the PSUs in General Insurance by the Multi National Companies through the increased FDI. The MNCs and private corporates could no so far match the business and service of the LIC.

The proposal to increase the FDI in Insurance should be opposed and defeated.