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Government gearing up for second wave of economic reforms

October 4, 2012 - New Delhi

The Government is all set to introduce even more reforms, after their recent reforms of Foreign Direct Investment (FDI) in retail and civil aviation. The Cabinet is expected to clear 26 per cent FDI in pensions and 46 per cent in insurance on Thursday.

FDI is not allowed in pension sector currently, and only 26 per cent FDI is allowed in insurance. Along with FDI in pension and insurance, the Cabinet is also likely to approve the Pharma pricing policy, which would make the pricing of Pharma friendlier to consumers. The move is expected to face a serious backlash as the drug experts claim that there are major loopholes in the pricing of drugs.

The Cabinet is also likely to consider the following:

  • Raise FDI in insurance sector to 49% from 26%
  • Allow FDI in pension sector
  • Forward Contract Regulation Act (Amendment) Bill
  • Companies Bill 2011
  • Amendment to the Competition Act
  • Proposal to set up National Investment Board (NIB) - to provide single window clearance for mega infrastructure projects

The government has faced major uproar from the opposition parties recently for allowing FDI in retail. Almost all major political parties in the country, other than the ruling Congress, has staged protests all over the country condemning the FDI in retail. The Trinamool Congress party also withdrew its support to the UPA coalition. However, the government is in no mood to backdown on introducing more economic reforms to improve the economy of the country.

Andhra News

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