11 May, 2021

"Our Banks Would Have Collapsed If 74% FDI Had Been Allowed"

CPI(M) politburo member and Rajya Sabha MP takes credit for his party's opposition to reforms in banking, insurance and pension

Tribhuvan Tiwari
"Our Banks Would Have Collapsed If 74% FDI Had Been Allowed"
outlookindia.com
-0001-11-30T00:00:00+05:53
In the wake of the global economic meltdown, the Left parties have been claiming that their opposition to reforms in banking, insurance and pension has partially insulated the Indian economy. Excerpts from an interview with CPI(M) politburo member and Rajya Sabha MP Sitaram Yechury:

How far has the Left's opposition to reforms succeeded in insulating India from the global meltdown?

We have not been able to completely insulate ourselves. But we would have been hit much harder had we followed the liberalisation roadmap outlined by Prime Minister Manmohan Singh on his US visit in 2005. During the four-and-a-half years we supported the government, give us our due: we stopped the government from embracing liberalisation fully. We blocked reforms in banking, insurance and pension funds. If foreign banks had been allowed to take over 74 per cent interest in Indian banks, our banks would have collapsed. If pension funds had been privatised, crores of employees would have been ruined. Similarly, if the insurance cap had gone up to 49 per cent, the collapse of...
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