Union Cabinet on Wednesday allowed foreign airlines to invest upto 49 per cent under approval route in Air India. However, this nod comes with two conditions – foreign investment including that of foreign Airlines should not exceed 49 per cent either directly or indirectly and substantial ownership and effective control of Air India would continue to be vested in Indian national.
Other amendments in FDI Policy include 100 per cent FDI under automatic route for single brand retail trading. Also, 100 per cent FDI under automatic route in construction development has been allowed.Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) have been allowed to invest in power exchanges through primary market. The definition of ‘medical devices’ has been amended in the FDI policy, an official release said.