The Government today has approved certain changes in the FDI permitted in civil aviation activities. 

· FDI in Air Transport services would continue to be capped at 49% on the automatic route and 100% for Non-resident Indians (NRI), subject to no direct or indirect participation by foreign airlines.  This segment would be reclassified as Domestic Scheduled Passenger Airline Sector. 

· FDI up to 74% may be permitted on the automatic route for Non Scheduled airlines, Chartered airlines and Cargo airlines.  No direct or indirect participation by foreign airlines would be allowed in non-scheduled airlines and chartered airlines.  NRI investment would be allowed up to 100% on the automatic route.

· FDI up to 74% may be permitted on the automatic route for Ground handling Services subject to sectoral regulations and security clearance.  NRI investment would be allowed up to 100% on the automatic route.

FDI up to 100% may be permitted on the automatic route for Maintenance   

and Repair organizations; flying training institutes; technical training institutions; and helicopter services/seaplane services in the aviation sector requiring DGCA approval.

Foreign investment limits in civil aviation updated; new sectoral caps and NRI exemptions permit broader participation. Government updates FDI in civil aviation: Domestic Scheduled Passenger Airline retains a foreign ownership cap while NRIs may fully own; Non Scheduled, Chartered and Cargo Airlines and Ground Handling Services may accept higher FDI on the automatic route subject to no direct or indirect foreign airline participation and, for ground handling, sectoral regulations and security clearance; Maintenance and Repair Organizations, flying and technical training institutes, and DGCA approved helicopter/seaplane services are eligible for full foreign investment on the automatic route.