India Wants To Open Up Airline, Insurance Sectors To Foreign Investment

The Indian government may open up its insurance and aviation industries to foreign investors in an attempt to revitalize a slowing economy. The Finance Ministry has proposed raising the limit on foreign direct investment in Indian insurance and pension companies to 74% from the current 49% level.

The government also wants to allow foreign airlines to own Indian carriers. Easing FDI restrictions in the aviation sector could potentially help attract buyers for beleaguered national carrier Air India, which the government has been trying to sell off.

The government is also seeking a buyer for Jet Airways, a Mumbai-based international carrier that has been grounded since April 2019 after filing for bankruptcy.