UPA-II's Forgotten Promises

FDI in Insurance and Pension: 

The government was expected to make amendments to the Insurance Laws (Amendment) Bill, 2008 and Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011. But it has been pending for a quite long time now.

The implementation of FDI insurance can bring a good amount of foreign capital and better performances in the industry as FDI in pension promises an expanded fund management. The Foreign investment in both has been limited to 26 percent for long and the government has failed to make it to up to 49 percent.

The long pending insurance and pension fund reform initiative seems to have dropped by government due to the pressure from government allies and opposition parties. This has distanced the dream of easier foreign direct investment (FDI) norms in insurance and pension funds.

“Except the whole issue of FDI, there is no other major problem with the insurance Bill. Given the political compulsions, FDI will be 26 percent. There is no other choice. It is a political call, “said, a top finance ministry official, who refused to be identified, as reported by live mint .com.