BackUnion Cabinet meeting: Govt allows foreign airlines to invest up to 49% in Air India
The Union cabinet also approved 100% FDI in single-brand retail through automatic route
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New Delhi: The government on Wednesday allowed foreign airlines to invest up to 49% in Air India through government approval route ahead of its proposed privatization.
Existing rules allow foreign airlines to own as much as 49% in an Indian airline, with the exception of Air India.
In a Cabinet meeting chaired by Prime Minister Narendra Modi, the government, however, clarified that substantial ownership and effective control of Air India shall continue to be vested in Indian nationals. “Foreign investments in Air India including that of foreign airlines shall not exceed 49% either directly or indirectly," the government said in a statement.
The cabinet also approved 100% FDI in single-brand retail through automatic route. It also tweaked the local sourcing norm by allowing such entities to meet the mandatory 30% local sourcing norm incrementally within a period of five years of opening their first store in India.
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