Chidambaram Slams BJP for Shifting Stance on FDI, Calls for National Consensus

Strategic Insights -

Finance Minister P Chidambaram has criticized the Bharatiya Janata Party (BJP) for altering its stance on liberalizing foreign direct investment (FDI) in crucial sectors such as insurance, civil aviation, and telecom. In a scathing attack, Chidambaram stated that he finds it easier to convince the Left parties on the FDI proposal, highlighting the BJP's inconsistency in its position. He called on industry leaders to engage with opposition parties, including the Left and regional parties, to educate them on the benefits of FDI in driving industrial and economic growth.

Key Takeaways:

  • Chidambaram criticized the BJP for shifting its stance on FDI, accusing them of inconsistency in their position.
  • The Finance Minister stated that he has less difficulty convincing the Left parties on the FDI proposal than the BJP.
  • Chidambaram called on industry leaders to engage with opposition parties, including the Left, BJP, and regional parties, to explain the benefits of FDI in driving industrial and economic growth.
  • The Minister proposed hiking the FDI cap from 26% to 49% in insurance, 40% to 49% in civil aviation, and 49% to 74% in telecom sectors.
  • Chidambaram dismissed claims of critics and opposition parties that the UPA government is derailing reforms, emphasizing that "nothing will intimidate me or Prime Minister to deviate from the path of reforms."
  • The Finance Minister also suggested that the BJP should learn to be patient in opposition, as he was during the last six years out of power.

Statistics:

  • The proposed FDI cap hike in insurance sector is from 26% to 49%.
  • The proposed FDI cap hike in civil aviation sector is from 40% to 49%.
  • The proposed FDI cap hike in telecom sector is from 49% to 74%.
  • Chidambaram has been in power for the last six years, and suggests the BJP should be patient for the next five years.

Sources:

  • PTI (no date)
  • Asia Pulse, July 26.