India Civil aviation minister Ajit Singh ahs indicated that he is hopeful that the government will soon allow foreign direct investment in the aviation sector by foreign aviation firms.

The ministries of Finance and Civil Aviation are already backing the proposal to amend the FDI guidelines for the aviation sector and there are some ministries that are yet to announce give their approval. The government is considering allowing foreign airlines to buy stakes in Indian carriers.

Mr. Singh has reportedly held talks with most of the government's political allies about the proposal to help the sector which is facing pressure due to high cost of fuel and higher taxes in the country.

The proposal to allow foreign aviation companies to start investing in India’s airlines will come as a relief to the cash-strapped firms in the country like Kingfisher and others. It recommends allowing foreign airlines to buy up to 49 per cent stake in Indian carriers.

The ministries of Finance and Civil Aviation are already backing the proposal amend the FDI guidelines for the aviation sector and there are some ministries that are yet to announce give their approval. The government is considering allowing them to buy stakes in Indian carriers.