Government has put in place an investor friendly Foreign Direct Investment (FDI) policy, under which FDI, up to 100%, is permitted, on the automatic route, in most sectors/activities. FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly.  Significant changes in the FDI policy regime have been made in the recent past, to provide further openings for Foreign Direct Investment in different sectors. The extant FDI policy in respect of the Civil Aviation sector is annexed (Annexure I).

FDI inflows have a positive impact by supplementing domestic capital, technology and skills of existing companies including in the aviation sector, as well as through establishment of new companies. Keeping in view the sensitivity of the aviation sector, investment by foreign airlines has been allowed only up to 49% and on the government approval route.

Statements showing the FDI inflow into the country during the last three years and the current year, State/sector/country-wise, are annexed (Annexure II & III).

Click here to see Annexure

‘*’Complete/separate data on NRI investment is not maintained by RBI. However, the above FDI inflows data on NRI investment, includes investment by NRI’s, who have disclosed their status as NRI’s, at the time of making their investment.

The information was given by the Minister of Commerce & Industry, Shri Anand Sharma, in a written reply in the Lok Sabha.

Foreign Direct Investment policy: airports up to 100% FDI; scheduled airlines capped at 49%; security and regulatory clearances required. The Civil Aviation FDI regime sets specific equity caps and entry routes: airports up to 100% FDI (automatic for greenfield; automatic up to 74% for existing with government approval beyond 74%), scheduled domestic passenger airlines 49% (automatic; 100% for NRIs), non scheduled/helicopter/seaplane and related services up to 74% (government route beyond 49% and up to 74%; 100% for NRIs). Foreign airline investment into Indian carriers is permitted up to 49% under government approval, subsuming FDI and FII and requiring SEBI compliance, security clearances for foreign nationals and Ministry of Civil Aviation clearance for technical imports.