Finance Minister Arun Jaitley addressing a press conference on Wednesday
The cabinet has approved an executive order on Wednesday to implement coal and insurance reforms, underlining the administration's resolve to push through economic measures despite political opposition in Parliament.
"The ordinance on insurance sends a message to the world that country can no longer wait for reforms," said Finance Minister Arun Jaitley today.
Under the order, foreign firms can increase their participation in insurance joint ventures from 26 per cent to 49 per cent, a potential lifeline for a sector starved of capital and squeezed by regulations.
The move came after the government's plan to introduce a bill to increase the foreign investment cap was blocked in the Rajya Sabha or Upper House of parliament where the government is in a minority. Opposition leaders stalled important legislation, demanding that the Prime Minister first explain how he will rein in hardliners affiliated to his party who are allegedly forcing Muslims and Christians to convert to Hinduism.
President Pranab Mukherjee has to sign off the ordinance which must be approved by lawmakers within six weeks of the opening of the next session of parliament - scheduled for the start of February.
The cabinet also renewed another order opening up the coal industry to the private sector after a bill on the issue similarly failed to make headway in Parliament.