New Delhi (TIP): Despite facing the heat over the hike in diesel prices and reforms in foreign direct investment (FDI) in retail, the government has decided to go ahead with some more reforms. According to sources, the government is likely to go ahead with insurance reforms next week.
It is expected that the FDI cap on insurance will be raised from 26 per cent to 49 per cent.
According to sources, the decisions will be taken at a Cabinet meeting, which has been deferred to Tuesday.
Meanwhile, all FDI reforms announced earlier by the government have come into effect from Thursday.
Prime Minister Manmohan Singh is likely to make a statement on the diesel price hike and the reforms by the government on Friday.
This comes after the government last Friday cleared FDI in multi-brand retail, single-brand retail, aviation, broadcasting and power exchanges.
The Cabinet allowed 51 per cent FDI in multi-brand retail, and permitted FDI, up to 100 per cent, in single-brand retail trading, subject to specified conditions.
In another major decision, the government had approved FDI in aviation, allowing up to 49 per cent investment. The decision means that foreign airlines will now be allowed to invest as much as 49 per cent in the Indian carriers. However, this won’t be automatic as the companies will have to get clearance from the ministry