FinMin approves 49% FDI in insurance, pension

The Finance Ministry has approved foreign direct investment in insurance and pension sectors up to 49%, reports CNBC-TV18’s Aakanksha Sethi.

The Insurance and Pension Bills will now need Cabinet approval before coming up before Parliament. These Bills have already made one trip to the Cabinet, but at the time it was for 26% FDI. When Pranab Mukherjee was the Finance Minister, they had gone to the Cabinet but they had deferred the decision. With P Chidambaram now headed the finance portfolio, these bills were relooked and now the FDI limit stands at 49%. Whether the bills will come up for Cabinet approval or not, or what decision the Cabinet takes will be a political decision. Both these bills have seen strong opposition from the Mamata Banerjee led Trinamool Congress. But if the Cabinet clears these two bills, they will be introduced in the winter session of Parliament.