Industry bodies like Assocham and Confederation of Indian Industry (CII) welcomed the government's move to attract more foreign direct investment (FDI) in certain sectors.
The government recently allowed 100 per cent FDI in telecom, hiked FDI limit in insurance sector to 49 per cent and took steps to promote foreign capital inflow in defence sector.
Industry bodies and Indian companies feel that these steps are 'most timely' and will boost investor sentiments.
Assocham feels the move to attract FDI in insurance sector would unshackle the industry and drive orderly growth and long-term development of the insurance and pension sector in the country.
Meanwhile, Assocham wants the government to take steps to pass key legislation land acquisition, tax reforms and also easy norms on the mergers and acquisitions so that much needed consolidation in the insurance sector is facilitated.
Further, industry bodies are looking forward to government's decision on FDI limits in sectors like civil aviation, construction and real estate, information and broadcasting and media, banks and multi-brand retail.