NEW DELHI, Oct 4: India’s cabinet approved the opening-up of the insurance and pension sectors to foreign investment on Thursday as part of a new series of reforms aimed at reviving business sentiment.

The changes, which must be approved by parliament, will allow foreign companies to increase their ownership of insurance companies from 26 per cent to 49 per cent, an official from the prime minister’s office said.

In the pensions sector, previously closed to outside investors, foreign groups will be able to buy up to 26 per cent under the proposed policy change.

“The cabinet has cleared the pension and insurances bills,” the official told AFP on condition of anonymity.