BANGALORE: Elections are over and the new government has taken the charge with Mr.Narendra Modi as the new Prime Minister. The new government is expected to face many more challenges and pending issues that the old government has left out. One of such long pending issue is the raise of foreign direct investment cap in the insurance sector, which is to be solved by the new government. Once the government starts functioning it is expected to take up this issue as reported in Economic Times.

It seems that the new government has refused from raising the cap in the insurance sector and had also not allowed the old government to move ahead with this vital reform. But, after the vital agreement, the government should indicate its commitment to reforms and press ahead with decisions, which can be approved in Parliament without much difficulty.

"The bill is ready and we will take it to the new finance minister. If it is approved we will seek Cabinet approval. But it's a political call," said a senior government official, who did not wish to be identified.

Most of the foreign investors are eagerly awaiting the reforms path of the Modi government and the passage of the insurance bill is considered as a major signal of the government's commitment.