FDI in Aviation Sectors - Procedure, Fees & Documents Required

• Scheduled air transport service: includes domestic and international airlines
• Non-scheduled air transport service: includes charter operators, air taxi operators, air cargo service

The components which are permitted under aviation sector are as follows:

• Non-scheduled air transport services, Helicopter services and seaplanes under the automatic route
• FDI is permitted in MRO for maintenance and repair organization; flying training institutes and training institutions
• Brownfield Airport projects
• Sectoral regulations and security clearance under automatic route

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

Following are the key advantages derived for investors in India under oil and gas industry:

1. Growing Demand - The growing demand of working class groups and enlarging middle class demographic can have potential to raise demand for FDI in the aviation sector.
2. Opportunities - In FY 2018, the MRO industry was only raised up to US$ 800 million in India, but with resolute performance, it has now been anticipated to cross over US$ 2.4 billion in FY 2028. The government of India aims to construct the ‘Global MRO Hub’ from the current 3-5 years.
3. Rising Investments - India’s infrastructure, particularly for the aviation sector which includes airports and manufacturing aircraft components, contributes foreign investment up to Rs. 420-450 billion (US$ 5.99-6.41 billion) between 2018-2023. This marks the investment transgression in the coming days with up to 1 lakh crore (US $12 billion) as per the report said in May 2023.
4. Policy Support - The government of India supports the manufacturing aircraft industry by lowering the custom duty from 2.5% to 0% on aircraft components, parts including engines in FY 2021-2022.

1. Infrastructure Development - Promotion of systematic mapping of fast-paced infrastructure development includes roads, bridges, flyovers, health, and most crucial education policy. From economic growth to promoting trade at the global mark, aviation sets in the infallible components that are responsible for the swift delivery of progression in the economy.
2. Boost Tourism - It provides the fastest and quickest means to facilitate familiarity with different life spheres of various people. About 9.6% of the total GDP is accounted for by the tourism sector alone, which results in establishing a novel means to earn livelihood for local people.
3. Trade & Commerce - The facilitation of trade and commerce propagates the supply chain and market expansion widespread across countries emphasizing the notion of the special key role of FDI in the aviation sector.
4. Employment Generation - This sector enhances the productivity, innovations, and efficiency within the ability of genuine workforces such as suppliers of aviation components, manufacturers of the aviation industry, construction that built airport facilities, and manufacturers of airport retail outlets.
5. Catalytic Impacts - To seek dynamic motivation within potential employees to infuse great skills of manpower into projects, the aviation sector plays an essential role in increasing the magnitude of attracting potential employees at a global scale.

Foreign Direct Investment (FDI) in the aviation sector is a profitable and innovative segment that outshines the country's growth indices in the air machine components. The aviation sector comprises various aspects such as aircraft manufacturers, air traffic control, Maintenance Repair overhaul (MRO) ground handling services, airlines, and airports.

Several other factors to consider for investors while investing in heavy industries are listed below:

• For this, applicants need to undergo several steps to register under FDI in India. Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment awareness about investment should be carried forward by most experienced investors.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.