India is still struggling to get back on a stable footing and thus needs reforms like insurance Bill, Chief Economic Adviser Raghuram Rajan said.

Mr. Rajan said that the Indian economy was still facing some worries, and that the country couldn't afford to become satisfied if the economy was to be put back on the track.

Speaking on the topic, Mr. rajan said, "FDI in insurance is an important bill. And to the extent possible early passage of the Bill would help the country substantially."

He admitted that there were some constraints, but there was very little sanity in delaying the bill. He added that the country had waited a long time for the insurance bill to be passed and stressed that the sooner it was passed the better it would be for the country.

According to the chief economic advisor, allowing more foreign investment in the insurance sector would bring more funds along with more technological capabilities.

The Insurance Laws (Amendment) Bill, 2008, proposed to increase the limit of foreign investment in the insurance sector from current 26 per cent to 49 per cent.

The upper house pf parliament was scheduled to consider the bill last week, but couldn't do so due to continuous adjournments over Coalgate and several other issues.