PM Modi faces early resistance in insurance reform push

August 6, 2014

PM ModiNew Delhi, Aug 6: Plans by the government to allow more foreign investment in the country's still-small insurance sector has hit snags in parliament, testing Prime Minister Narendra Modi's campaign promise to push through reforms to revive the economy.

Over the past week, the government has twice sought to introduce legislation in the upper house of parliament permitting 49 percent foreign participation in an insurance venture, up from 26 percent, but it has been blocked by the opposition.

Finance Minister Arun Jaitley has called the heads of political parties to a meeting on Wednesday in a bid to form a consensus behind the legislation so billions of dollars can flow into a sector starved of funds and held back by over-regulation.

Modi's government expects that if the sector is opened further, insurers such as Canada's Sun Life Financial Inc, Prudential PLC Nippon Life Insurance Co, Italy's Generali and Dutch insurer Aegon NV will inject more funds into what is the world's 10th biggest life insurance market - even though currently fewer than 4 percent of Indians have insurance.

Jaitley needs the support of the opposition in the 250-member upper house of parliament where his Bharatiya Janata Party (BJP) and its allies have about 60 members.

The ruling group faces no problem winning approval from the lower house, where it has a comfortable majority after an election in May.

But the upper house is the stumbling block. Its next elections - when one-third of its members retire - are not due until 2016.

ANOTHER OPTION AVAILABLE

If the government continues to be stymied it has an option - rarely used - to hold a joint session of parliament and deploy its huge majority in the lower house to push through the insruance bill. A previous BJP government used a joint session once to get through a tough anti-terrrorism law, citing national security.

But the BJP would rather get the upper house on board.

"We are going to bring the bill for discussion in this session," Commerce and Industry Minister Nirmala Sitharaman told Reuters, suggesting the government was prepared for a showdown over its first, modest stab at reform since Modi took office in May.

In 2000, when the BJP led the government, India opened its insurance sector to private and foreign ownership. Since then, most top international insurers have entered.

In 2008, the government - then led by Congress party - proposed changing ownership laws to allow 49 percent foreign participation in insurance ventures, but it could not win parliament approval.

Liberalising investment rules "will bring a lot of capital into an investment-starved sector whose growth is good for the economy," Jaitley told CNBC TV18 Monday night.

'INTERNAL CONSULTATIONS'

The Congress, thrashed by the BJP in this year's lower house elections, hasn't declared opposition to the insurance bill.

"There is no final yes or no on this," said Randeep Singh Surjewala, a senior member of Congress, which has 69 members in the upper house. "We are in the midst of internal consultations. We are pro-investment, but we want the interests of all stake-holders to be protected."

Jaitley said he could not understand why the Congress was not backing the liberalisation as the party had repeatedly sought to push it through earlier, and the bill he brought was essentially the same as Congress proposed in 2008.

"Only 10 days ago, Congress got up during the budget discussion and said this 49 percent in insurance is our idea," the finance minister said. "I don't mind they wanted to take the credit. Suddenly I find they want to go to a select committee now."

India's two main parties - the BJP and the Congress - remain bitter opponents even after the electoral battle, seeking to deny the other any political advantage.

When in opposition, both parties have sought to whip up resistance to liberalising sectors of the economy such as insurance and defence, and to labour reforms. Such steps are considered vital to reviving growth that last year fell to 4.7 percent, the slowest pace in a decade.

Tens of thousands of employees at India's state-controlled insurance companies and their communist party backers are strongly opposed to foreign involvement in the insurance sector, saying it would give them control over domestic savings and was against the national interest.

Even a trade union affiliated to the ruling BJP criticised the measure to open up the insurance sector.

"Trade unions are strongly opposed to the hike in the foreign investment limit as it would lead to outflow of people's savings," said Vrijesh Upadhyay, general secretary at Bharatiya Mazdoor Sangh, India's biggest trade union.

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News Network
May 29,2020

New Delhi, May 29: With the highest spike of 7,466 more COVID-19 cases and 175 deaths reported in the past 24 hours, India's COVID-19 tally reached 1,65,799 on Friday, according to the Union Ministry of Health and Family Welfare.

The number of active coronavirus cases stands at 89,987 while 71,105 people have been cured or recovered and one patient has migrated, it said. The death toll due to the infection has reached 4,706 in the country.

Maharashtra is the worst affected state with 59,546 cases. Tamil Nadu has recorded as many as 19,372 cases while Gujarat and Delhi have recorded 15,562 and 16,281 coronavirus cases respectively.

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News Network
June 24,2020

New Delhi, Jun 24: In a stinging attack on the Gandhi family of the Congress, BJP president J P Nadda on Wednesday said a dynasty and its courtiers have "grand delusions" of the opposition being about itself and stated that a "rejected and ejected" family is not equal to the entire opposition.

In his tweets, Nadda said it was the time for unity and solidarity, and the "relaunch of the scion for the nth time can wait", an apparent dig at Rahul Gandhi, who has been aggressive in his attacks on Prime Minister Narendra Modi for his handling of the border row with China.

Nadda said India lost thousands of square kilometres of land due to the "misadventures of one dynasty" and claimed that the Siachen glacier, where the Indian Army has a strong presence, was almost gone. No wonder India has rejected them, he said.'

The BJP president posted a news report to back his assertions about Siachen.

"One 'royal' dynasty and their 'loyal' courtiers have grand delusions of the Opposition being about one dynasty. A dynast throws tantrums and his courtiers peddle that fake narrative. The latest one relates to the Opposition asking questions to the Government," Nadda said.

Though he did not directly name the Gandhi family or any of its members, the reference was clear.

He said it was the opposition's right to ask questions and added that the all-party meeting called by Prime Minister Narendra Modi saw healthy deliberations, with several opposition leaders giving their valuable inputs.

They also fully supported the Centre in determining the way ahead, Nadda said.

"One family was an exception. Any guesses who," he asked.

Targeting the Gandhis, the BJP president said, "One rejected and ejected dynasty is NOT equal to the entire Opposition. One dynasty's interests are not India's interests. Today, the nation is united and supportive of our armed forces. This is the time for unity and solidarity. Relaunch of 'the scion' for the nth time can wait."

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News Network
January 8,2020

Howrah, Jan 8: Following the 'Bharat Bandh' called by trade unions, protesters blocked railway tracks in Howrah and Kanchrapara in North 24 Parganas on Wednesday.

They raised anti-government slogans and criticised the Center for its policies. They were holding placards, posters and banners against the government.

Commuters faced difficulties as bus services were also affected. CPI (M) protesters also stopped the operation of state transport buses. In Odisha, the public agitation started around 6 am at Talcher, Bhubaneswar, Brahmapur, Bhadrak and Kendujhargarh.

Due to the protests, the following trains are detained enroute at different stations --Bhadrak-Brahmapur passenger at Bhadrak, Kendujhargarh-Bhubaneswar passenger at Kendujhargarh, Bhubaneswar-Balangir InterCity at Bhubaneswar, Howrah-Yesvantpur Express at Brahmapur, Ichhapur-Cuttack MEMU at

Brahmapur and Puri-Rourkela passenger at Bhubaneswar.

The ten central trade unions including Centre of Indian Trade Unions (CITU), Indian National Trade Union Congress (INTUC), among others have given the call for strike with a 12-point charter of demand. Trade union Bharatiya Mazdoor Sangh (BMS) is not taking part in the strike.

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