The Budget announcement to further relax Foreign Direct Investment (FDI) in the civil aviation sector may help the government to find buyers for Air India as well as Jet Airways, which will also be put up for sale under the bankruptcy proceedings.
Finance Minister Nirmala Sitharaman announced in the Budget today that the government will look at relaxing FDI norms for sectors like Aviation, Media and Single-brand retail. In the same speech, she also announced that the government will continue to go ahead with the divestment of various Central Public Sector Undertakings, including Air India.
This will not be the first time that the government is trying to divest its stake in Air India. An earlier attempt by the government to divest 76% stake in the national carrier did not find any taker. Read more