The recommendation by a parliamentary panel on a pending pension bill is the latest strike to economic reforms that have stalled as the government was paralyzed by scandals.
The government has been taking steps of late to make the country more investment friendly, backing in principle foreign direct investment in multi-brand retail, a reform that has been delayed for years, Reuters said.
Some of the reform measures, including a proposal to lift the cap on foreign holdings in insurance companies to 49% from 26%, require parliamentary approval.
Most of the 23 life insurance players in India, nearly all of which have a foreign partner holding a 26% stake, are eager to enter the pension fund market, analysts said.
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