Industry welcomes govt's insurance, pension moves

**New Delhi:**India Inc today termed government’ssecond wave of reforms, including decisions to open thepension sector to foreign investment and raising the FDI capin insurance to 49 percent, as “path-breaking and landmark”.

“The new instalment of big bang reforms is a clear messagethat the government is determined to strengthen the economy,“Ficci President R V Kanoria said.

He said that these forward looking measures would infusethe much-needed capital in the insurance and pension sectors.

Kanoria also urged the government to make investmentguidelines more flexible so that such funds can be used tosupport infrastructure development.

“Today, insurance and pension funds are constrained toparticipate in infrastructure projects as these are requiredto invest a substantial portion of their funds in governmentsecurities and also not allowed to invest in projects ratedbelow a certain level. These limitations need to somewhatrelaxed,” he added.

Sharing similar views, CII said the industry was anxiouslywaiting for the clearance of the Companies Bill for itsintroduction in Parliament.“The new company law is expected to be more streamlinedand facilitative than the existing 55-year-old Companies Act,it seeks to replace,” CII Director General Chandrajit Banerjeesaid.

Banerjee said on enactment, the Companies Bill will be aboon for business, corporates, investors and stakeholders atlarge.“The new law would strengthen the concept of shareholdersdemocracy and offer protection of the rights of minoritystakeholders,” he said.

Poor showing by the manufacturing sector pulled down theGDP growth to 5.5 percent in the first quarter, the decade’sworst Q1 performance.

PTI