World Economy

India Permits 100% FDI in Aviation

India Permits 100% FDI in AviationIndia Permits 100% FDI in Aviation

In a significant reform move, the government of India Monday allowed 100% foreign direct investment in airlines and relaxed norms for overseas investments in brownfield airports, PTI reported. Aimed at attracting more funds into the aviation sector with a high growth potential, the government’s latest measure comes less than a week after the unveiling of the National Civil Aviation Policy. The announcement also comes against the backdrop of persisting concerns over ownership and control at local carriers where foreign players have a substantial stake. Now, 100% foreign investment will be allowed in “scheduled air transport service/domestic scheduled passenger airline and regional air transport service”, an official release said. Only non-airline players will be allowed to bring in 100% FDI in local carriers. Under the new set-up, 49% will be through the automatic route and for anything beyond, government nod will be required. At present, up to 49% FDI is permitted in scheduled airlines.