India Cabinet clears pension, insurance reform
NEW DELHI (REUTERS) - India's Cabinet approved Bills for foreign investment in insurance and pensions on Thursday, in the latest move by Prime Minister Manmohan Singh to restore confidence in the flagging economy.
Under the Bills cleared by the Cabinet, the cap on foreign money in insurance companies would rise from 26 per cent to 49 per cent, an official from the Prime Minister's Office said.
In the pensions sector, previously closed to outside investors, foreign groups will be able to buy up to 26 per cent under the proposed policy change, AFP reported.
The proposed changes will have to be approved by Parliament and are likely to face resistance from opposition parties,