The Union Cabinet on March 4, 2020 approved Foreign Direct Investment, FDI policy on civil aviation.
FDI policy was amended to permit foreign investment in Air India.
Non Resident Indians can acquire up to 100 per cent equity in Air India under automatic route. Earlier only 49 per cent were available for sale to NRIs but now they can purchase 100 per cent.
According to the Union Government, India has become most favoured nation in FDI.
As per the present FDI Policy, 100% FDI is permitted in scheduled Air Transport Service/Domestic Scheduled Passenger Airline (Automatic upto 49% and Government route beyond 49%). However, for NRIs 100% FDI is permitted under automatic route in Scheduled Air Transport Service/Domestic Scheduled Passenger Airline.
