The government should go for sweeping reforms and increase FDI limit in the country to push growth, the Survey said.
While FDI should be allowed in multi-brand retail, its cap should be increased in sectors like insurance and defence, it said. In sectors like health insurance, 100% FDI should be allowed, the survey noted.
Opening of retail will drive economic growth, it said, although this subject did not find favour till last year because of pressure from the government's allies. It was also being argued that the opening up of retail will affect the future of mom-andpop stores, which employ millions of people.
The survey said a beginning could be made in food retailing. Initially FDI could be allowed—subject to setting up a modern logistics system, perhaps jointly with other organised retailers. "A condition could could also be put that it must have (for say five years) wholesale outlets where small, unorganised retailers can also purchase items (to facilitate transition),'' the Survey said.
India at present allows 51% FDI in single brand store like Nokia and Nike. It also allows 100% FDI in wholesale cash & carry model, but has not allowed FDI in multi-brand retail. A recent Parliamentary Standing Committee report had also opposed FDI in retail. The committee had even opposed the entry of big domestic players to protect the unorganised sector.
In insurance, the survey suggested an increase in the limit to 49% from the current 26%. The government has already proposed this in the Parliament, but because of strong opposition from the Left parties it could not be passed. In weather insurance, it recommended 100% FDI.
"Raise foreign equity share in insurance to 49%. In addition, consider allowing 100% foreign equity in a special category of insurance companies that provide all types of insurance (health, weather) to rural residents and for all agriculture-related activities including ago-processing,'' it said.
While FDI should be allowed in multi-brand retail, its cap should be increased in sectors like insurance and defence, it said. In sectors like health insurance, 100% FDI should be allowed, the survey noted.
Opening of retail will drive economic growth, it said, although this subject did not find favour till last year because of pressure from the government's allies. It was also being argued that the opening up of retail will affect the future of mom-andpop stores, which employ millions of people.
The survey said a beginning could be made in food retailing. Initially FDI could be allowed—subject to setting up a modern logistics system, perhaps jointly with other organised retailers. "A condition could could also be put that it must have (for say five years) wholesale outlets where small, unorganised retailers can also purchase items (to facilitate transition),'' the Survey said.
India at present allows 51% FDI in single brand store like Nokia and Nike. It also allows 100% FDI in wholesale cash & carry model, but has not allowed FDI in multi-brand retail. A recent Parliamentary Standing Committee report had also opposed FDI in retail. The committee had even opposed the entry of big domestic players to protect the unorganised sector.
In insurance, the survey suggested an increase in the limit to 49% from the current 26%. The government has already proposed this in the Parliament, but because of strong opposition from the Left parties it could not be passed. In weather insurance, it recommended 100% FDI.
"Raise foreign equity share in insurance to 49%. In addition, consider allowing 100% foreign equity in a special category of insurance companies that provide all types of insurance (health, weather) to rural residents and for all agriculture-related activities including ago-processing,'' it said.
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