FDI Bill Sparks Heated Debate in Lok Sabha: A Clash of Protection vs. Profit

The Lok Sabha was in a heated debate over a bill aiming to increase FDI in the insurance sector to 100%. Proponents argue it's a chance to increase insurance penetration and job creation, while opposition members fear it could harm the existing local insurance structure and increase premiums.

The Lok Sabha witnessed an intense debate on Tuesday as members discussed a controversial bill to raise Foreign Direct Investment (FDI) in the insurance sector to 100%. The move strongly supported by the ruling dispensation, faces staunch opposition from various parties.

Congress representative Manickam Tagore criticized the bill, arguing it would unsettle the insurance sector and prioritize profit over protection, contrary to previous government policies. In contrast, BJP's KV Reddy highlighted the potential benefits of greater insurance penetration and increased job opportunities through enhanced foreign investment.

However, opposition voices, including Samajwadi Party's Utkarsh Verma and RSP's NK Premachandran, warned of the risks to local players and potential increases in premium rates. As the debate continues, the bill's future remains uncertain, with calls to review or send it to a Parliamentary Committee for further scrutiny.

(With inputs from agencies.)