FDI NORMS ON CIVIL AVIATION

July 30, 2020

The Government of India has notified changes in Foreign Direct Investment (FDI) norms on civil aviation.

About:

  • These rules will be called as the Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2020.

  • It will permit non-resident Indian nationals to own 100 % stake of Air India.

  • The amendment removes the exception which permitted Overseas Citizens of India 100% FDI in air transport, but not Air India. This category of citizens has been replaced with NRIs, now allowed to commit 100% FDI in air transport, including Air India, through automatic route.