Air India's 49% stake for foreign investors : Union Cabinet

Foreign direct investment of 100% was approved by Union cabinet in single brand retail sector. 49 percent of foreign investment cap in national carrier, Air India was also approved by cabinet.

The decision means that foreign airlines will be able to buy upto 49 per cent stakes in Air India. Foreign single brand retail chains will be allowed to set up their stores in India.

"The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given its approval to a number of amendments in the FDI Policy. These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment," the government release read.

"Extant FDI policy on SBRT allows 49% FDI under automatic route, and FDI beyond 49% and up to 100% through Government approval route. It has now been decided to permit 100% FDI under automatic route for SBRT," the release added.