In a first major reform initiative by the Modi Government, the Cabinet on Thursday gave a go-ahead to FDI cap hike in insurance to
49 per cent with a rider that management control will remain in the hands of Indian promoters. The move kicks-off expectations of relaxation of FDI norms in Railways and Defence in the coming days.
The Cabinet’s approval to hike the FDI limit from the current 26 per cent is expected to attract a long-term capital, besides improving the overall investment climate. The decision is expected to pave way for inflow of as much as Rs 25,000 crore foreign funds in the sector.