The Union Cabinet has approved a plan to allow FDI in the pension sector upto 26%, while hiking the FDI in the insurance sector to 49%, from the current 26.
The cabinet also approved the draft of the 12th Five-Year Plan, which seeks to increase funding for social sectors such as health and education besides boosting economic growth.
As far as the FDI in the pension sector and FDI in insurance sector is concerned the government would need the nod of parlianment. Mamata Banerjee, TMC Chief has made it clear that she is opposed to FDI in the insurance and the pension sector.
The government will have a tough job of getting the bills passed in parliament and any logjam means that these bills will be stuck.