FDI in Aviation Sector


With a view to aid in modernisation of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% Foreign Direct Investment (FDI) under automatic route has now been allowed in Brownfield Airport projects. This move would also serve in further developing the domestic aviation infrastructure. Further, FDI limit for Scheduled Air Transport Service, Domestic Scheduled Passenger Airline and regional Air Transport Service has been raised from 49% to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For Non-Resident Indians (NRI’s), 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy. Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to consumers.

Moreover, FDI policy as contained in the ‘Consolidated FDI Policy Circular of 2016’, as amended from time to time, is subject to the conditions of the extant policy on specified sectors and applicable laws/ regulations security and other conditionalities. Accordingly FDI policy on Civil Aviation sector is also subject to sectoral and security conditions.

IndianBureaucracy.com wishes the very best.

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