Economy Sep 21, 2012
After biting the bullet on foreign direct investment (FDI) in retail and aviation, the Centre is likely to hike the foreign direct investment in insurance to 49 percent from 26 percent. However main opposition Bharatiya Janata Party, the Left as well as some of the parties that support the government are opposed to raising FDI in insurance.
According to CNN IBN sources, the decisions will be taken at a Cabinet meeting, which has been deferred to Tuesday. Media reports also said the cabinet committee on economic affairs (CCEA) would take up the issue of enhancing FDI in the pension sector too.
Given the opposition faced by the government on the reform measures, this proposal may be difficult to implement, as it needs the approval in Parliament.
Prime Minister Manmohan Singh, meanwhile, is likely to make a statement on the diesel price hike and the reforms today.
The Congress-led UPA government has also decided to fast-track the disinvestment process.
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