A crucial Cabinet meeting is underway at 7RCR to discuss more mega reforms particularly aimed at opening the insurance and pension sectors. What the cabinet is likely to green light is raising the cap on FDI in insurance from 26 per cent to 49 per cent and allowing upto 26 per cent in the pension sector. The proposals on FDI in insurance and pension were floated by Pranab Mukherjee when he was Finance Minister and were sent to the Cabinet for approval in May this year. But the decision was deferred underlining the difficulty the Centre faced in driving reforms. Finance Minister P Chidambaram assured India Inc that the government is keen on speeding up reforms and hoped legislation for raising FDI in insurance sector will be passed in the winter session of Parliament. But the Opposition to these decisions seems to be coming not only from outside the UPA but even within.
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