First economic reforms earlier proposed  by Manmohan Singh including the FDI in retail market has shown positive effects with rupee gaining value against the USD. However, the Opposition party is still against such reforms further and is expected to hinder the second round of reforms in the FDI as planned by the congress-led UPA, United Progressive Alliance, in the sectors of pension and insurance. The UPA Cabinet is expected to clear 26 per cent foreign direct investment (FDI) in pension and raise the cap in insurance to 49 per cent on Thursday.

Passing these two bills at once is likely to attract more criticism from the Bharatiya Janata Party, Left Front, Trinamool Congress, Samajwadi Party, Bahujan Samaj Party and Biju Janata Dal who have already mentioned their opposition to FDI in pension to allow 26% investments from foreign companies. The said that they would not support the move to raise it. Only BJP offered support to the proposal to allow FDI in pension but this offer had been retracted after the government plans to push for the 49% allowance of FDI in insurance sectors from the current 26% FDI.

Parties like the Samajwadi Party and Bahujan Samaj Party, who are extending outside support to the UPA, are also against the move. TMC and the Left Front are bent on defeating the bills in the parliament by voting against them. They quoted that this would put the security of the 'aam admi” at a risk.

CPI leader D Raja added, "We will oppose FDI in insurance. What is new about the pension scheme? Why should India succumb to World Bank's policies?"

For a bill to be passed in the House, a simple majority is essential according to the Parliament rules for any bill to be passed. Lok Sabha as 254 UPA members currently who would vote for the bill.

(AW- Anil)