New Delhi: After FDI in retail, the Cabinet is likely give a push to another round of reforms on Thursday. The Cabinet will take up the long-pending insurance and pension bills on Thursday. The amended bills propose hiking foreign investment limit to 49 per cent from the present 26 per cent.
Although the government had given its approval, it did not come up for discussion in the Monsoon session due to opposition from the Trinamool Congress. Sources have indicated to CNN-IBN that the Insurance National Investment Board may also be considered for an approval.
Insurance companies have been demanding an increase in the FDI cap to fund business expansion. This comes after the government last month cleared FDI in multi-brand retail, single-brand retail, aviation, broadcasting and power exchanges.
The Cabinet allowed 51 per cent FDI in multi-brand retail, and permitted FDI, up to 100 per cent, in single-brand retail trading, subject to specified conditions. In another major decision, the government had approved FDI in aviation, allowing up to 49 per cent investment. The decision means that foreign airlines will now be allowed to invest as much as 49 per cent in the Indian carriers. However, this won't be automatic as the companies will have to get clearance from the ministry and FIPB.