The Indian government is considering amending the current rules on 100% foreign ownership in domestic airlines, Aviation Minister Jayant Sinha said on Wednesday, as global carriers increasingly eye entry into the world’s fastest-growing aviation market.
Speaking in the capital, Sinha addressed Qatar Airways’ recent announcement about its plans to establish a domestic airline in India, revealed last week during an aviation event in Berlin. While confirming that the government has not yet received a formal application from the Gulf carrier, Sinha emphasized that India has a “very robust reforms agenda” for the civil aviation sector.
“We are evaluating the 100% foreign ownership rule in this context,” Sinha said.
Qatar Airways Eyes Indian Market Entry
Qatar Airways CEO Akbar Al Baker had stated that the airline intends to launch a domestic carrier in India soon, adding that the company is expanding at a “double-digit pace.” According to reports from Bloomberg, the Doha-based airline could start operations in India with a fleet of 100 aircraft, although no official timeline has been shared.
Al Baker also expressed confidence that geopolitical developments, including U.S. trade policy under President Trump, would not impede the expansion of Gulf airlines. He added that London, followed by Paris and New York, would be the first long-haul routes to debut new business class seating.
Context: India’s FDI Push in Aviation
In June 2024, the Indian government liberalized foreign direct investment (FDI) norms across multiple sectors, including aviation. The reforms allowed up to 100% FDI in brownfield airport projects under the automatic route, a move aimed at modernizing infrastructure and alleviating pressure on existing airports.
Previously, FDI in such projects was capped at 74% under the automatic route, with any investment beyond that threshold requiring government approval.
India’s domestic aviation sector has seen sustained growth in recent years. According to a report by Live Mint, the country recorded nearly 100 million air passengers in 2016 and is projected to become the third-largest aviation market by 2026, overtaking the United Kingdom.
As international players continue to look toward India for expansion, proposed amendments to foreign ownership rules could further reshape the domestic aviation landscape.
