BJP questions legal, political intentions behind FDI in insurance

BJP: "We have made it very clear that we are against FDI in multi-brand retail".

Updated: Oct 05, 2012, 17:56 PM IST

New Delhi: BJP on friday questioned the "legal and political intentions" behind allowing 49 per cent FDI in the insurance sector but remained non-committal about its stand in Parliament when the Bill regarding the economic reform comes up for passage.

"We have made it very clear that we are against FDI in multi-brand retail.

As for yesterday`s cabinet decision, the Standing Committee on Finance had opposed more than 26 per cent FDI in insurance. BJP is opposed to the government`s views," party vice-president Mukhtar Abbas Naqvi told reporters.

Asked what BJP`s stand will be when the insurance bill comes up in Parliament, he said "we said FDI should be 26 per cent. There is a question mark on the legal and political intentions behind this move of the government."

After opposing FDI in multi-brand retail, BJP is concerned that it may be creating the impression of being anti-reforms. Since BJP-led NDA, when it was in power, had taken the initiative to allow FDI in insurance and pensions, a section in the party feels it should not oppose it now.

However, Naqvi evaded all questions on what BJP`s stand will be in Parliament on these issues.

Finance Minister P Chidambaram has said the government will reach out to the principal opposition to win its support.