FDI norms relaxed for Air India

The central government has relaxed the foreign direct investment norms for Air India, which is currently undergoing divestment. According to the revised norms, foreign airlines are permitted to invest up to 49 per cent in the airline either automatically or through the approval route. As a result, majority ownership and effective control of Air India will continue to vest with Indian nationals. Earlier, foreign airlines were allowed to own as much as 49 per cent of local carriers, but Air India being a public sector undertaking was kept out of the preview.