India may allow 100% FDI in aviation by February 2020
January 2, 2020: Finance Minister Nirmala Sitharaman may raise the 49 percent foreign direct investment cap in the country’s aviation industry to 100 percent during the upcoming budget in February 2020.
Particularly, the government wanted to attract international players to bid for Air India and find buyers for Jet Airways.
January 2, 2020: Finance Minister Nirmala Sitharaman may raise the 49 percent foreign direct investment cap in the country’s aviation industry to 100 percent during the upcoming budget in February 2020.
Particularly, the government wanted to attract international players to bid for Air India and find buyers for Jet Airways, reports Livemint. In her last budget speech in July, the finance minister had already proposed to raise the FDI limit in domestic carriers. 100 percent FDI is already allowed in MRO (maintenance, repair, overhaul), ground handling and aircraft purchase in Indian aviation.
The government of India has already tried and failed to sell the debt-ridden and is on the second attempt to sell the same. Due to severe financial crunch, Jet Airways was grounded in April 2019. The union budget for 2020-21 will be presented on February 1, 2020.
