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Cabinet allows NRIs to take 100% in Air India
Why is it in the news?
- The Union Cabinet 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.
More in the news
- As per an official statement, 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.
- To liberalise FDI:
(1) The FDI policy would be amended to allow NRIs who are Indian nationals to own up to 100% of Air India under automatic route.
(2) The amendment was meant to ‘liberalise and simplify the FDI policy to provide ease of doing business in the country.
- Data of FDI Inflow:
(1) While 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.
Source
The Hindu.