The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:
The Polit Bureau of the Communist Party of India (Marxist) strongly disapproves the decision of the Union Cabinet to increase the ceiling for foreign capital entry into the Indian insurance sector from the existing 26 per cent to 49 per cent. For the last four years this was not allowed to be done by the Left parties on whose support the UPA government depended. This was based on the understanding that in the interests of India and its economic fundamentals the hard earned life long savings of the Indian people in the insurance sector should not be put at the disposal of international finance capital that thrives on the basis of speculation. Such an increase in the cap for foreign capital would have resulted in the outflow of Indian people’s savings to lubricate speculative profits. Because of the Left’s opposition India has been able to withstand, to some extent, the complete onslaught of the current global crisis of international finance capital.
In the light of the current global crisis, such a decision would be counterproductive and vastly enlarge India’s vulnerability to international speculators. The Left parties will oppose this move when it comes before the parliament. The Left parties appeal to all other parties who have the interests of the Indian people and their economic prosperity in mind to join in opposition of this move which will only provide greater profits to speculative capital at the expense of the Indian people.