India Inc hails govt's decision on insurance, pension funds
New Delhi: India Inc on Thursday termed government's second wave of reforms, including decisions to open the pension sector to foreign investment and raising the FDI cap in insurance to 49 percent, as "path-breaking and landmark".
"The new instalment of big bang reforms is a clear message that the government is determined to strengthen the economy," Ficci President R V Kanoria said.
He said that these forward looking measures would infuse the much-needed capital in the insurance and pension sectors.
Kanoria also urged the government to make investment guidelines more flexible so that such funds can be used to support infrastructure development.
"Today, insurance and pension funds are constrained to participate in infrastructure projects as these are required to invest a substantial portion of their funds in government securities and also not allowed to invest in projects rated below a certain level. These limitations need to somewhat relaxed," he added.
Sharing similar views, CII said the industry was anxiously waiting for the clearance of the Companies Bill for its introduction in Parliament.
"The new company law is expected to be more streamlined and facilitative than the existing 55-year-old Companies Act, it seeks to replace," CII Director General Chandrajit Banerjee said.
Banerjee said on enactment, the Companies Bill will be a boon for business, corporates, investors and stakeholders at large.
"The new law would strengthen the concept of shareholders democracy and offer protection of the rights of minority stakeholders," he said.
Poor showing by the manufacturing sector pulled down the GDP growth to 5.5 percent in the first quarter, the decade's worst Q1 performance.