India Allows Overseas Airlines to Enter Aviation Industry
The proposals to allow foreign investors to enter retail and aviation industries of India had been held last year, a recent report has uncovered. And following bids by a newly assertive government that a stalled agenda as well as a crisis period over the slowing economy would be eluded soon, the nation has now threw open all these industries for them.
As per the findings, alliance partners had frightened to revolt the previous year after the biggest policy push of Manmohan Singh, the Indian Prime Minister, received the proposals. But, the plans have now come into force as it is being believed that the same would help in changing the view people have about the government.
Commerce Minister Anand Sharma has informed that 49% of Indian carriers would from now on be allowed to be owned by overseas airlines. It is being said that the PM has just 18 months to go to gain back the support, which is currently on decline. Also, the whole ruling Congress party has this short time before the next general election to earn confidence in their economic management.
Standard Chartered Plcâ€™s economist from Mumbai is of the opinion, â€śIf this changes the perception that investors have about India, this could be positive for inflows, equities and for the currencyâ€ť.