Pending reforms in the financial sectors such as banking, insurance and pension are unlikely to see the light of the day in the near future. With just one year to go before the country goes to polls, the government is set to focus on issues like financial inclusion involving the ?common man.?
Reform measures like increasing foreign direct investment from the current 26% to 49% in insurance, passing the Pension Fund Regulatory and Development Authority (PFRDA) Bill and aligning the voting rights with the stakeholding pattern in private sector banks in the country are yet to be sorted out.
Analysts tracking theses sectors said that with Lok Sabha elections inching closer, the UPA would turn its focus on the ?aam admi.? ?These issues are not relevant from the election point of view and there would be pressure on the ruling party to touch the pulse of the country with focus on the masses,? an analyst said.
Sources within the political circles said that there are no talks on these critical issues. ?These are not priority issue at this point,? a source pointed out.
India Inc has shown its discomfort over this uncertainty. The insurance sector, it is leant, has particularly been affected by the government?s inability to act. Rough estimates suggest that insurance companies would require huge funds in the near future to grow and expand. However, with the cap on FDI still at 26%, infusion of capital is becoming restricted. The restrictions in the banking sector has also proved to be a dampener for foreign investors. The Left parties have reiterated their stand. A senior member of Parliament of the CPI(M) said that the government would have to face serious consequences in case the UPA tried to push reforms.