ANNOUNCEMENT 14 Sep 2012

In September 2012, the government of India announced changed incentives for foreign investors entering the country.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Press Information Bureau, Government of India. English Release of the Cabinet Committee on Economic Affairs, 14.09.2012:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=87784

Ministry of Finance, Department of Economic Affairs, Press Release of 25.03.2013: http://www.fipbindia.com/admin/case_approval/case03252013.pdf


Inception date: 14 Sep 2012 | Removal date: open ended
Still in force

FDI: Financial incentive

On 14 September 2012, the Indian Cabinet Committee on Economic Affairs approved a new regulation, which allows foreign airlines to invest in scheduled and non-scheduled air transport services. Previously, foreign airlines were only allowed to invest in cargo airlines as well as helicopter and seaplane service companies.
 
The new regulation includes the following restrictions: 
- the foreign investment does not exceed 49 per cent of the total value of the project;
- the foreign company has to be registered and must principally operate in India;
- its chairman and at least two-thirds of the directors must be Indian citizens.
 
As of March 2013, the Foreign Investment Promotion Board (FIPB) of India reports that AirAsia is the only company having set up a JV company in India, whereas Farnair Switzerland is the only one having purchased shares of an Indian company.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A