INDIA: India FDI to be permitted in retail and airlines

Monday September 17 2012

It has been reported that the Indian government will allow India foreign supermarkets to buy up to 51 per cent in a local partner, reviving measures it had put on hold in December due to strong political opposition.

The government on Friday also allowed foreign airlines to invest up to 49 percent in domestic carriers. The cabinet committee on economic affairs (CCEA), chaired by the prime minister, approved the proposal that was stuck for months as there was no political consensus on the issue.

Foreign airlines can now invest up to 49 percent in any of the private domestic carriers like Jet Airways, SpiceJet and Go Air.

According to civil aviation ministry sources, the directives for the implementation of the policy will be issued within a month.

This information will be updated as further details become available.