The cabinet finally decided to allow upto 49 percent overseas investments in aviation sector, giving wings to cash-strapped Indian carriers.
These measures were pending for a long time and the government has now shown political courage to push things through. The process of clearing all these got delayed and it is just that all are coming together.
"As an immediate impact, business and consumer sentiment will improve, stock market will improve. But I don't think RBI will cut rates after these measures because the impact of these steps on supply side will only be in the medium term.
Views from Sharan Lillaney, Aviation Analyst, Angel Broking, Mumbai
"FDI in aviation has always been approved, this is just an approval for foreign airlines. This was not something out of the extraordinary, so there is no question of it being reversed."
"I don't think there will be a flurry of investments, but airlines in better shape will definitely see interest from foreign airlines, such as SpiceJet, Indigo or Jet."
"There are a lot of people interested."
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