Investing in a different future

AVIATION Current rule

100% FDI (up to 49% via automatic route) in scheduled passenger airline by non-airline foreign investor; for foreign airlines, the cap remains at 49%; 100% FDI under automatic route in brownfield airports

Previous rule

49% FDI (automatic) in scheduled passenger airline; 74% FDI (automatic) in brownfield airport projects

Impact: A foreign airline can join hands with a foreign nonairline investor to completely buy into a domestic airline

DEFENCE Current rule

Condition of access to state-ofthe-art tech scrapped for FDI beyond 49% under govt route Previous rule FDI above 49% under govt approval on case-to-case basis where it can result in access to modern & state-of-the art technology Impact Makes entry of foreign firms less complicated; Russian firm Kalashnikov looking for Indian partners; Swedish firm Saab may raise stake from 49% in existing JV with a local partner

SINGLE-BRAND RETAIL Current rule

Waiver of 30% local sourcing rule for 3 years and a relaxed souring regime for another five years foir entities having state-of-the-art technology Previous rule Entities having state-ofthe-art technology can get exemption from sourcing rule

Impact: Players like Apple have to start sourcing locally only from the fourth year of setting up own retail outlets