A meeting of the central trade unions held at BMS office, New Delhi on 26th December, 2014 has condemned the anti-democratic action of the central government to promulgate ordinances on increasing the cap of FDI in insurance from 26 per cent to 49 per cent and also for e-auction of coal blocks, bypassing the parliament. Besides BMS, leaders of  central trade unions including INTUC,AITUC,CITU, HMS, UTUC, AICTU etc also participated in the meeting. The meeting adopted a resolution which flayed the government for the anti-people measures being taken by the government which are detrimental to national interest.

The President of India, despite strong protest by the opposition parties, especially the left parties has signed both the ordinances.

The intention of the government is to weaken the public sector insurance companies, Life Insurance Corporation of India and the 4 general insurance companies which are functioning effectively in spite of allowing private insurance companies in the sector. The argument of the government for increasing  FDI cap in insurance is that it will only strengthen the sector is far from the reality. On the contrary, the government wants to bring in American Insurance companies which were collasped during the last economic recession in 2008-09 and bailed out by the US government giving money from the treasury. Also these companies are far behind LIC in settlement of the claims.

LIC on the other hand, not only serve the customers to their satisfaction but also contributing largely to the development of the country. It has deposited a whooping sum of Rs.10,69,769  crore in the government securities. In the first two years of the 12th five year plan alone, LIC has deposited Rs. 4,52,460 crore for the infrastructural development. On the basis of these facts the Parliamentary Standing Committee, appointed by the earlier UPA government which was headed by none other than Sri.Yasvant Sinha, BJP leader and former Finance Minister in the Vajpaye government, had unanimously reported against increase in FDI cap in the insurance sector. But BJP, after coming to power has reversed shamelessly its earlier stand and is acting on the dictat of the US imperialists, even endangering national interest.