Air India opens the doors for 49 % Foreign Investment

New Delhi, January 10: The doors for 49% FDI route for national air carrier Air India were opened in a decision taken. The ease in foreign direct investment (FDI) norms in various sectors, including Civil Aviation After the approval foreign airlines, will now be allowed to invest up to 49 percent under approval route in the national carrier.

The decision was taken during the Cabinet meeting chaired by Prime Minister Narendra Modi. “These are intended to liberalize and simplify the FDI policy so as to provide ease of doing business in the country. In turn, it will lead to larger FDI inflows contributing to the growth of investment, income and employment,” a government press release state.

 

Meanwhile, the Parliamentary Standing Committee on Transport, Tourism and Culture yesterday concluded that the government should review its decision to privatise or disinvest Air India and explore the possibility of "an alternative to disinvestment of our national carrier which is our national pride".

Allowance to the foreign airlines to invest up to 49 percent under approval route in Air India subject to the conditions that: Foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49 percent either directly or indirectly and that (b) substantial ownership and effective control of Air India shall continue to be vested in Indian national.