The AIADMK supremo lambasted the Centre when she said that its decision to hike FDI in Insurance sector to 49 per cent, "against a Parliamentary Standing Committee recommendation will prove disastrous".
"The UPA Government is unfazed by the sufferings of the common people, small traders and small farmers.....This move at best is a gimmick and at worst an unworthy risk," she said in a statement two days after the Manmohan Singh government
unleashed the second wave of reforms over FDI in pension and insurance sectors.
Strongly opposing these moves, she said they were detrimental to the future of common people of the country. "The act of disguising harmful decisions and promoting them under the name of grand reforms amounts to deceiving the people of the country. No amount of rhetoric will change the truth," she said.
"As to whether they have the right to jeopardise this crucial sector is a debatable issue," she said adding limiting the capital requirement to Rs 50 crore for insurance companies will lead to "mushrooming" of small companies lacking experience and capability and will be fraught with danger.
It will unnecessarily expose the public to the risk of uncertainty, she said.Allowing FDI in pension funds and channelling the
domestic savings of elderly persons into the highly risky and unpredictable capital market will place the future of senior citizens at tremendous risk, the Chief Minister added.