The Modi government is undertaking this disinvestment measure as part of the overall plan to liberalise and privatize the financial sector. The way will be opened for more participation of foreign insurance companies. This is not in the interests of the people and the country
Privatisation of Financial Sector
Adopted at the 20th CPI(M) Congress, April 4-9, 2012
ON PRIVATISATION OF FINANCIAL SECTOR
The 20th Congress of the CPI(M) strongly opposes the privatization of people’s savings by the Government of India.
India has a bright record with respect to people’s savings. Household savings amounted to Rs 17,49,311 on March 31, 2011, and gross domestic savings constituted 32 per cent of Gross Domestic Product.
Domestic savings are channeled by means of insurance, banking, mutual funds and pensions to make up a stock of capital that constitute an important resource for meeting infrastructural and social investment needs.