FDI norms relaxed, foreign airlines can invest up to 49% in Air India

A formal notification is expected later on Wednesday

The government on Wednesday relaxed FDI norms in various sectors such as single brand retail and allowed foreign airlines to invest up to 49 per cent in Air India.

The decision was taken during the Cabinet meeting chaired by Prime Minister Narendra Modi here.

The Cabinet allowed overseas investors to invest 100 per cent FDI (foreign direct investment) in single brand retail trading and construction development without any government approval, an official statement said.

"Foreign airlines allowed to invest up to 49 per cent under approval route in Air India," the statement said.

As per the policy, foreign airlines are