Cabinet Clears Reforms: 100% FDI in Insurance, Atomic Push

• Cabinet okays 100% FDI in insurance sector
• Atomic energy opened to private players
• HECI Bill, India-Oman FTA, MGNREGA revisions

The​‍​‌‍​‍‌​‍​‌‍​‍‌ Union Cabinet, led by Prime Minister Narendra Modi, has given its nod to a range of significant economic reforms that would India ready for an influx of foreign investment, become more efficient in various sectors, and spread the benefits of growth throughout the country.

One of the key decisions is to permit 100% Foreign Direct Investment (FDI) in the insurance sector with no restriction being left, to allow the sector to attract capital, compete more, improve service quality, and co-opt the finance sector in the infrastructure and long-term development mobilization of funds.

The Cabinet has also approved the relaxation of the nuclear energy sector, which is to be opened to private participation for increasing energy security, heightening the technological evolutions, and having a broader mix of power sources in a situation of increasing demand.

Also Read: JSW Energy Arm in 400MW Power Deal with Karnataka DISCOMs

In the field of education, the Parliament passed the Higher Education Commission of India (HECI) Bill, which provides for the merging of the UGC and AICTE and other such bodies into one regulatory authority to simplify management, govern through accountability, and uplift quality standards in higher education institutions.

Trade relations were upgraded through the approval of a Free Trade Agreement (FTA) with Oman, the primary aim of which is to intimate economic linkages and widen market access. MGNREGA changes on the social side of the ledger offer more guarantees by providing employment for 125 days per year at a daily wage of ₹240, thereby deepening rural livelihoods and promoting economic resilience. Altogether, these steps are a daring attempt to liberalize, innovate, and become self-sufficient, thus opening up India to high growth over an extended period with the possibility of simultaneously solving sectoral ​‍​‌‍​‍‌​‍​‌‍​‍‌problems.