Letters to the editor :
The wrong parallel
The Financial ExpressPosted: 2008-12-26 23:22:40+05:30 ISTUpdated: Dec 26, 2008 at 2322 hrs
Your editorial (‘By FDI for the poor’, Dec 24, 2008) draws a parallel between the vast volumes in the telecom sector and its promise of prosperity for the poor. With respect to raising living conditions, telecom and insurance are as different as chalk and cheese. Judging by use, telephone is not a necessity in the way medical care or life insurance is. The telecom success story and the mobile phone’s so-called levelling effect or its contribution to GDP may gratify but it doesn’t warrant hiking FDI or rolling the red carpet for reinsurance to the Lloyd’s which has been rocked by losses. Most of the foreign insurance players in Indian market are going through financial nightmares in the countries of their origin. This Bill may be an opportunity for them to cover up problems at home and reap benefits from the more secure Indian market. Shouldn’t we promote domestic Indian insurance firms instead of chasing faulty foreign ones?
—Subhashree Kishore New Delhi