Reforms in Defence, Railways, Insurance & Labour Laws to put India on the fast-track to Growth
The advent of NDA Government at the Centre, the pace of reforms in India has also picked up significantly. The Government has brought about reforms in multiple sectors to keep pace with changing times & to quicken the process of development.
The Government is enhancing the FDI limit from the present 26% to 49% for speedy indigenisation in the Defence Sector. Opening the railways sector to foreign investment in high-speed trains, gauge conversion and new railway lines will immensely improve the connectivity and bring relief to passengers and other users. Moreover, the capital infusion in the sector will improve the connectivity of the rail lines with ports and mines. Furthermore, FDI relaxation in defence sector will see new defence technologies and manufacturing units. This will empower our defence force and reduce dependence on defence imports.
The growth in life insurance sector and non-life sector serves the large interest of the Indian citizens by providing affordable insurance cover and will have positive impact in boosting overall growth of the Indian economy. To encourage growth of the sector and to provide funds to investment starved insurance sector, the Government has taken initiative to increase Foreign Direct Investment (FDI) cap in Insurance Sector to 49 % from existing 26%. To keep the country’s interests while allowing FDI, the cap of 49% is set with full Indian management and control.
Amendments have also been proposed to labour laws including the Factories Act, 1948, the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988 and Apprentices Act, 1961 to bring them in tune with demands of changing labour market scenario and to ensure ease of business.
