Rajya Sabha panel endorses 46 per cent FDI in Insurance

New Delhi: Prime Minister Narendra Modi’s efforts to further open up India’s markets to foreign investments got a major boost Wednesday when a select committee of the Rajya Sabha endorsed the Insurance Bill, that seeks to hike FDI to 49 per cent.

Hours later, the Bill’s draft, as amended by the committee headed by BJP MP Chandan Mitra, was approved by the Union Cabinet late Wednesday night. Sources said the Bill is likely to be tabled in the Rajya Sabha on Monday, and if passed, will go to the Lok Sabha for approval.

The Bill is likely to have smooth passage in the Rajya Sabha, with the Congress, AIADMK and BJD supporting it. However, sources said MPs from Trinamul Congress, SP, JD(U) and Left parties may try disruptive tactics to scuttle its passage. While the Congress supported the bill in the committee, it may not go out of its way to help the government and is unlikely to issue a whip to its members.

The passage of the Bill with support from the Congress, whose demands like the composite foreign investment cap of 49 per cent that includes Foreign Direct Investment (FDI and portfolio investment were accepted, will be a major achievement for the NDA government well in time before US President Barack Obama’s visit in January.