India to allow 74% FDI in cargo by 2007

Civil Aviation Minister Praful Patel today said the government would raise the foreign direct investment ceiling in air cargo and non-scheduled operations to 74 per cent from the current 49 per cent, by 2007. 
“India will look up to hiking the FDI ceiling in the two sectors by 2007,” Patel said while addressing the International Air Transport Association seminar on cargo in emerging markets. 
“We have not even scratched the surface of the air cargo business, and cargo infrastructure needs to be greatly enhanced,” he said. 
Patel said state-run carriers Air-India and Indian Airlines would also enter the cargo business shortly. 
When asked why 74% FDI was not being allowed in passenger aviation sector, Patel said, “We would like our carriers to consolidate their position first and then we will look into opening up the sector further”. 

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