Executive Briefings

India Acts to Make Foreign Direct Investment Easier

In an attempt to attract more foreign funds to boost the nation's businesses, India's government this week relaxed the rules regulating the amount of foreign direct investment allowed across a wide spectrum of Indian business sectors, including the aviation industry.

Under the new rules, India will now allow non-airline companies to own up to 100 percent of the shares of Indian air carriers. The previous limit had been 49 percent. Those non-airline investors seeking more than 49 percent, however, must negotiate a formal approval of the transaction from the Indian government. The limit of FDI for foreign airlines in India-based domestic carriers remains the same, at 49 percent.

The rules also were changed to allow FDI of 100 percent in Indian brownfield airports, which was was already the case for greenfield sites.

Read Full Article

Under the new rules, India will now allow non-airline companies to own up to 100 percent of the shares of Indian air carriers. The previous limit had been 49 percent. Those non-airline investors seeking more than 49 percent, however, must negotiate a formal approval of the transaction from the Indian government. The limit of FDI for foreign airlines in India-based domestic carriers remains the same, at 49 percent.

The rules also were changed to allow FDI of 100 percent in Indian brownfield airports, which was was already the case for greenfield sites.

Read Full Article