Chidu Approves Proposal of 49 Percent FDI in Insurance, Pension Sectors

Bangalore: Finance Minister P Chidambaram has approved to raise the foreign direct investment (FDI) limit in the insurance and pension sectors to 49 percent from the current level of 26 percent.

"The bills (pension and insurance) have been cleared and are ready to go to the cabinet," a Finance Ministry Official said, as quoted by ET.

It is still not certain whether when the cabinet will accept the proposal; hence Chidambaram will need the support of all the support of all the allies to get the bill passed. In case the two bills seeks cabinet approval but then the chances of it getting tabled in the parliament during the monsoon season which will conclude on August 27, is quite low. There can be a possibility of the bill to be presented in the parliament during the winter session.

After being criticized for the lack of policy decisions, The United Progressive Alliance (UPA) is taking several measures to increase investment flow and uplift economic growth in India which has shifted to a nine hear low 6.5 percent in 2011-2012 and is expected to go further down in future.