The UPA has won a big victory over the FDI in retail issue. After the Lok Sabha, the Rajya Sabha also passed it. It is evidence of the democratic process which means reforms are coming to maturity. There was a great big rumpus over its passage. One fact remains indisputable. The end of the licence and permit raj for two decades has increased economic freedom to a great extent. The option for a young graduate has now expanded considerably for seeking employment in medicine, engineering and government services as well as in a coffee bar or a retail superstore. In future, the UPA government can stop pussyfooting and go ahead with reforms in the remaining winter session. An extensive horizon is opening up.
Important bills are pending. Their passage will allow the entry of FDI into our pension, insurance and banking sectors-hiking FDI cap to 49% from the current 26% in private insurance and allowing foreign investors to come into the pension sector which will let them enter the household savings activities. BJP leader Sushma Swaraj has made it clear that her party is not opposed to all foreign capital. It will welcome FDI into power, airlines and the like, the big bang reforms putting an end to the Centre’s policy paralysis. It should be recalled that it was the NDA government which initiated reforms for inflow of FDI in the pension sector. But now the major parties are playing politics and opposing reform in many sectors only to put the Congress in a vulnerable position. The UPA cannot in any case go into inaction. Only 4% of Indians currently enjoy insurance and pension benefits. Both sectors need capital infusion through legislation. Land acquisition however remains a controversial issue.