DIPP Secretary Ramesh Abhishek asserts that the cap for foreign airlines to invest in Indian aviation will stay at 49 per cent. In an exclusive interview with Bloomberg TV India, he says the government will continue on its path to further open up the economy to facilitate ease of doing business.
You have allowed up to 100 per cent FDI in aviation. How will this help the aviation sector to grow?
Civil aviation is a fast-growing sector. Perhaps, India has the fastest-growing civil aviation sector in the world. And the potential for increase of the sector in terms of the passengers being carried is enormous.
And we felt that there is no reason not to allow 100 per cent FDI in this sector if it leads to its development. There will be more infusion of capital, which may help in extending more routes and adding to the capacities, whether it is airports or airlines.
I think we have provided a helping hand to get access to more capital to the sector.We need top-class infrastructure if we want to grow the economy to a double-digit level. So there is no need to restrict FDI in the aviation sector.
There is a little bit of a restriction here. Foreign airlines can invest only up to 49 per cent in scheduled carriers in India. Tell us the rationale behind retaining that clause?
The 49 per cent cap was already there. But the important thing is it was always 100 per cent for NRIs. And now this has been made 100 per cent for all investors, all foreign investors other than foreign airlines. And this will open up huge possibilities of investment in the sector.
23/06/16 Mehak Kasbekar/Business Line
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You have allowed up to 100 per cent FDI in aviation. How will this help the aviation sector to grow?
Civil aviation is a fast-growing sector. Perhaps, India has the fastest-growing civil aviation sector in the world. And the potential for increase of the sector in terms of the passengers being carried is enormous.
And we felt that there is no reason not to allow 100 per cent FDI in this sector if it leads to its development. There will be more infusion of capital, which may help in extending more routes and adding to the capacities, whether it is airports or airlines.
I think we have provided a helping hand to get access to more capital to the sector.We need top-class infrastructure if we want to grow the economy to a double-digit level. So there is no need to restrict FDI in the aviation sector.
There is a little bit of a restriction here. Foreign airlines can invest only up to 49 per cent in scheduled carriers in India. Tell us the rationale behind retaining that clause?
The 49 per cent cap was already there. But the important thing is it was always 100 per cent for NRIs. And now this has been made 100 per cent for all investors, all foreign investors other than foreign airlines. And this will open up huge possibilities of investment in the sector.
23/06/16 Mehak Kasbekar/Business Line
