New Delhi: The Finance Ministry has proposed that foreign direct investment in insurance and pension sectors be increased to 49 per cent. The Insurance and Pension Bills will now need Cabinet approval before coming up before Parliament.
These Bills have already made one trip to the Cabinet, but at the time it was for 26 per cent FDI. When Pranab Mukherjee was the Finance Minister, the Bills had gone to the Cabinet but the decision had been deferred.
With P Chidambaram now heading the Finance Ministry, the two Bills were relooked and now the FDI limit is proposed to be increased to 49 per cent.
Whether the Bills will come up for Cabinet approval or not, or what decision the Cabinet takes will be a political decision. Both these Bills have seen strong opposition from the Mamata Banerjee led Trinamool Congress.
But if the Cabinet clears these two Bills, they will be introduced in the winter session of Parliament.