UPA has been boosted by the success of the FDI amid the controversies, debates and walk-outs after the allowance in multibrand retail and aviation has been approved. With the enthusiasm, and the desire to better the economy, the government has made amends to the FDI on the latest proposal of pushing the 26% cap on FDI in insurance to 49% and introduction of FDI in pension up to 26% and they were approved by the cabinet today on Thursday.

First economic reforms earlier proposed  by Manmohan Singh including the FDI in retail market has shown positive effects with rupee gaining value against the USD. However, the Opposition party is still against such reforms further and is expected to hinder the second round of reforms in the FDI as planned by the congress-led UPA, United Progressive Alliance, in the sectors of pension and insurance. The UPA Cabinet is expected to clear 26 per cent foreign direct investment (FDI) in pension and raise the cap in insurance to 49 per cent on Thursday.

(AW- Anil)