Thaindian News

New Delhi, June 30 (IANS) Accusing the Bharatiya Janata Party (BJP) of playing politics and blocking key economic reforms, Prime Minister Manmohan Singh hoped key legislation in areas such as insurance, pension and taxaion would be passed soon.

“The consensus that emerged until a few months ago on the Good and Services Tax - the BJP is clearly playing politics. They do not want the government to pass this landmark legislation,” Manmohan Singh said during his interaction Wednesday with a group of print editors.

“We had helped the BJP pass the first insurance bill. All we want now is to increase the share of FDI (foreign direct investment) to 49 percent. The bill is in parliament,” he said.

“I hope we can still persuade the opposition and other parties to pass the bill,” he said, adding: “Insurance industry needs that capital. Domestic industrialists don’t have that large capital base. They need that support.”

The prime minister — who was asked why the progress of economic reforms was languishing for some two-three years — also said he was hopeful of some progress being made in opening up multi-brand retailing to foreign companies.

“There is also the question of supply-chains and distribution of food supply. This is where the question of FDI in retail comes in,” he said.

“There is a big debate about it in government and parliament. There is fear of small traders, but without breaking such institutional barriers, there is fear of food inflation,” he added.

“I am hoping we can make a beginning in these areas.”

India currently permits 100 percent foreign equity in establishing cold chains and wholesale cash and carry trade - up to 51 percent equity - but bars overseas investment in multi-brand retail trade.