Apex industry chambers hailed the new instalment of reforms as a clear message that the Government is determined to strengthen the economy and spur investments.
FICCI President R.V. Kanoria welcomed the hike in foreign equity investment cap in the insurance sector to 49 per cent and allowing up to 26 per cent foreign equity in the pension sector.
Confederation of Indian Industry (CII) expressed hope that all political parties would see the merit of these Bills and facilitate a speedy passage during the forthcoming winter session of Parliament.
CII, however, expressed concern about the mandatory two per cent spend on corporate social responsibility activities, “as companies may merely undertake activities to fulfil the legal requirement, rather than creatively innovating integrated strategies,” the industry body said.
“There is an imperative need to make investment guidelines for insurance and pension funds more flexible,” added Kanoria.
According to present regulations, substantial portion of these funds need to be invested in Government securities and are not allowed to be invested in projects rated below a certain level.
“These limitations need to somewhat relaxed,” he added.