The Union Cabinet on Wednesday decided to allow Non-Resident Indians (NRIs) who are Indian nationals to own up to 100% stake of Air India, which is bound for disinvestment.
Union Information and Broadcasting Minister Prakash Javadekar said at a press conference that the Cabinet, at a meeting chaired by Prime Minister Narendra Modi, had decided to increase the maximum stake for NRIs from 49% to 100%. The government is in the process of selling the national carrier, having invited preliminary bids recently.
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The FDI (foreign direct investment) policy would be amended to allow NRIs who are Indian nationals to own up to 100% of Air India “under automatic route”, a government statement said. The amendment was meant to “liberalise and simplify the FDI policy to provide ease of doing business in the country”, the statement said.
Mr. Javadekar said FDI had increased in the tenure of the Modi government. While the FDI inflows stood at $45.15 billion in 2014-2015, the provisional figures for FDI had increased to $62 billion in the last financial year 2018-2019.
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