Pushing ahead with its economic reforms, the government is now mulling over plans to raise foreign direct investment (FDI) cap in insurance sector to 49 per cent and also open the pension sector to foreign investors.

Today, on Thursday, the Union Cabinet will consider the Insurance Bill that seeks to hike the FDI cap in insurance sector from existing 26 per cent to 49 per cent; while the proposal in the Pension Fund regulatory & Development Authority (PFRDA) Bill seeks to allow FDI in the pension sector also.

Last month, the Congress-led Union government had approved proposals to allow 51 per cent FDI in multi-brand retail, and relaxed foreign investment norms for civil aviation and some sections of broadcasting sector.

The Union Cabinet will take up the proposal to amend the DTAA (Double Taxation Avoidance Agreement) with Poland and Armenia.

The Civil Aviation Ministry's proposal to approve Coimbatore, Mangalore, Lucknow, Varanasi and Tiruchirapalli as international airports is also expected to be considered in the meeting.

Besides, the Cabinet is expected to the 12th Five-Year Plan document that proposes to lower annual average rate of economic growth from 9 per cent to 8.2 per cent.