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Centre allows 100 per cent FDI in airlines, 49 per cent cap for foreign carriers stays

The government on Monday raised foreign direct investment (FDI) limit in scheduled commercial airlines to 100 per cent from 49 per cent. Foreign airlines, though, are barred from holding equity stake in Indian carriers above 49 per cent. As per changes in the FDI policy announced by the Prime Minister’s Office, foreign investors can pick up 100 per cent FDI in existing airports under the ‘automatic route’ — a change from present regime where foreigners needed government approval if they wanted to raise equity stake in airport projects from 74 per cent to 100 per cent. “As per the present FDI policy, foreign investment up to 49 per cent is allowed under automatic route in scheduled air transport service/domestic scheduled passenger airline and regional air transport service. It has now been decided to raise this limit to 100 per cent, with FDI up to 49 per cent permitted under automatic route and FDI beyond 49 per cent through government approval,” the PMO said in a statement.