ME News Bureau: The Union Cabinet showed green light to clear major hurdles to further raise the foreign investment in the country as the government tweaked rules to allow 100 percent foreign direct investment (FDI) in single-brand retail and real estate broking services while allowing foreign airlines to invest up to 49% in Air India.
The government considers the measures as part of a move to “liberalise and simplify the FDI policy so as to provide ease of doing business in the country”.
Currently foreign airlines can invest up to 49% in Indian air transport services, scheduled and non-scheduled services, of their paid-up capital, however, not allowed to invest in the national carrier.
Foreign investments in Air India will ease the facilitation of its divestment process as the national carrier currently churns out severe loss each year.
The moves came ahead of Prime Minister Narendra Modi’s trip to the World Economic Forum in Davos, where he is expected to showcase the country’s investment potential.
