FDI reforms announced

The Union Cabinet unveiled a fresh round of liberalisation of the foreign direct investment policy, allowing foreign airlines to invest up to 49% in Air India, and opening up 100% FDI in single brand retail under the automatic route. Similarly, 100% FDI has been allowed via the automatic route in real estate broking services.

Under the existing rules, foreign airlines can invest, with government approval, in Indian companies operating scheduled and non-scheduled air transport services, up to 49% of their paid-up capital. However, this provision was not applicable to Air India, implying that foreign airlines could not invest in the national carrier.

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