MIXED REACTION TO INDIAN INVESTMENT PROPOSALS

INSURERS and their representative trade bodies have welcome the Indian government’s support for plans to raise the foreign investment cap to 49% from the current 26%. However left wing parties in the Indian parliament have criticised the proposals which they say work “to demolish the Indian economy's strong fundamentals”. They accuse the UPA government of moving further right-wards after the left-leaning parties left the ruling coalition. A Bill outlining the investment cap hike is expected to be tabled in the Indian parliament next month.