The Union Cabinet plan on raising the FDI cap in the insurance sector to 49%, on October 4, 2012 . The Cabinet will also consider opening the pension sector to foreign investment apart from the creation of a National Investment Board.
Other crucial measures will also be considered by the cabinet such as, elevating the powers of the commodity market regulator FMC, Competition Billing to bring sectors under the Companies Act and model a tripartite agreement for operationalisation of the Infrastructure Development Fund (IDF). The Cabinet will be considering the mentioned major proposals for the second time in a month to push the reform initiative.
The government, on September 13, 2012, had approved the much talked about decision of allowing 51% FDI in multi-brand retail, apart from relaxing the norms for civil aviation and the broadcasting sector. The Insurance Bill which is at present at 26%, seeks to raise the FDI cap in the insurance sector to 49%.
On Thursday the Union Cabinet is also likely to approve the 12th ‘Five Year Plan’ document, which proposes to lower the annual average economic growth rate to 8.2% as opposed to the 9% that was initially predicted. The Cabinet will also be considering the proposal from the civil aviation ministry of approving Lucknow, Tiruchirapalli, Varanasi, Mangalore and Coimbatore as international Airports.
It will also be considering amendments to the proposal of the ‘Double Taxation Avoidance Agreement’ with Poland and Armenia.
