Govt tweaks FDI norms to open single brand retail, aviation sector further

Automatic approval for full investment in single-brand retail, foreign airline may now invest in Air India

Just days ahead of the World Economic Forum in Davos, where Prime Minister Narendra Modi is likely to showcase India’s potential before global chief executive officers and political leaders, the Union Cabinet has relaxed rules for attracting foreign investments across sectors such as aviation, retail, and construction. This is the fourth time in the past three years that the government is tweaking the foreign direct investment (FDI) rulebook. 

In a significant step, the Cabinet on Wednesday permitted FDI in state-owned carrier Air India, which is up for disinvestment. Foreign airlines or any other foreign investor can now put in up to