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Fiscal reforms face Opposition hurdles

Last Updated 23 November 2014, 19:45 IST

Prime Minister Narendra Modi’s attempt to push through key economic reforms has suffered a setback with many Opposition parties deciding to scuttle a bill that seeks to increase foreign direct investment (FDI) in the insurance sector.

The Centre wants to introduce the bill in the winter session of Parliament that begins on Monday.

The Janata Dal (United), Bahujan Samaj Party, Samajwadi Party and the Communist Party of India (Marxists) have opposed the bill.

With many parties deciding to block the  bill, the Bharatiya Janata Party (BJP) may find it difficult to push it through owing to a lack of majority in the Rajya Sabha.

An all-party meeting was convened by Parliamentary Affairs Minister M Venkaiah Naidu on Sunday evening. Later, Modi reached out to the Opposition saying that “collectively all important issues can be taken forward in Parliament.”

 Naidu assured the Opposition parties that the government “is more than willing to work” on their suggestions.

But, Finance Minister Arun Jaitley said in his Facebook post on the eve of the Parliament session that he suspects the Congress “will disrupt parliamentary functioning.” Jaitley said the Congress would pursue a “destructive direction” that had “damaged” the national economy when it led the United Progressive Alliance regime.


 Modi hoped that the month-long winter session would go “very well” like the budget sitting of the Rajya Sabha and the Lok Sabha.

The National Democratic Alliance (NDA) government plans to introduce over 29 bills in this session. The Insurance Bill, the coal ordinance and the constitutional Amendment Bill on Goods and Services Tax figure high on the economic reforms that the NDA wants to introduce this session. The NDA seeks to give a thrust to the pro-people budget it wants to present early next year.

Naidu said: “The government  wants the national agenda for development to be given priority. The Insurance Bill is one in that direction.”

The four Opposition parties have also sought the support of the Congress. The move is being seen as an attempt to bring together anti-BJP formations to exhibit their strength and collectively bargain for issues dear to them.


The Centre wants the FDI in insurance to go up to 49 per cent . “The Janata Dal (United),  Bahujan Samaj Party, Samajwadi Party and the Communist Party of India (Marxists) will oppose the FDI hike in the insurance sector. We will seek Congress support for Opposition unity,” Janata Dal (United) leader K C Tyagi told reporters.
The Trinamool Congress, which boycotted the all-party meeting, has also opposed the bill.

The Centre failed to bring the Insurance Bill in the last session owing to Congress opposition. The bill was later sent to a 15-member select committee.

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(Published 23 November 2014, 19:45 IST)

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