By IANS,
New Delhi : The decision to raise the cap for FDI in insurance and pension funds will make the Indian financial sector “more vulnerable to speculative finance capital”, the CPI-M said Friday.
“These measures announced by the cabinet will make India’s finance sector more vulnerable to speculative finance capital,” the Communist Party of India-Marxist said in a statement.
The government has decided to raise the cap for foreign direct investment in the insurance sector from the current 26 percent to 49 percent. The cabinet has also decided to allow 49 percent FDI in pension funds.
“The decision to allow FDI in pension funds will jeopardize the savings of millions of employees in the country,” the CPI-M said.
The CPI-M urged political parties to “defeat these measures when they are brought before parliament”.