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FDI rules relaxed, debt-ridden Air India opened for foreign investment

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Modi govt relaxes FDI rules, will allow foreign airlines to invest in Air India

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Narendra Modi Cabinet approves slew of changes in FDI rules, 100 per cent FDI through automatic route in single brand retail allowed

Over three years after it took a strong position against the then Dr Manmohan Singh-led UPA government’s decision for allowing foreign direct investment in various sectors, including single and multi-brand retail, the BJP under Prime Minister Narendra Modi appears to be going all out to promote foreign investment in various sectors of India’s stagnating economy.

On Tuesday, a meeting of the Union Cabinet chaired by the Prime Minister decided to substantially relax rules for FDI in a host of sectors, including single brand retail trading (SBRT), construction and civil aviation. The Cabinet has approved amendments to the Centre’s FDI policy in the civil aviation sector, paving the way for a liquidity infusion in the cash-strapped national carrier – Air India – which was hitherto excluded from the list of India’s airline operators in which FDI was allowed.

“As per the extant policy, foreign airlines are allowed to invest under Government approval route in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent of their paid-up capital. However, this provision was presently not applicable to Air India, thereby implying that foreign airlines could not invest in Air India. It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49 per cent under approval route in Air India,” an official statement from the government said after the Cabinet meeting.

The Cabinet has decided that FDI in the debt-ridden Air India will be permitted on the condition that it does not exceed 49 per cent either directly or indirectly and that “substantial ownership and effective control of Air India shall continue to be vested in Indian National.”

The Centre has sought to justify its move claiming that the relaxation of FDI norms would help provide ease of doing business and lead to larger foreign investment inflows.

The Prime Minister and his cabinet seem to have realised that FDI is a major driver of economic growth and a source of non-debt finance for the economic development of the country. It is pertinent to recall that while the BJP was in Opposition and Modi was chief minister of Gujarat, he along with Arun Jaitley and Sushma Swaraj – then Leaders of Opposition in the Rajya Sabha and Lok Sabha respectively – had led the saffron party’s charge against the UPA government’s FDI policy.

Now, at a time when the country’s GDP seems to be on a steady decline amid projections of continuing stagnation in the domestic economy owing to disruptions caused by the Goods and Services Tax (GST) rollout, the Modi government is going all out to embrace a tool on boosting investment inflows that it had once vociferously decried for being against the interests of India.

Besides opening up Air India for FDI, the other key decision taken at Tuesday’s Cabinet meet was the red-carpet rollout for foreign investment in single brand retail trading.

“Extant FDI policy on SBRT allows 49 per cent FDI under automatic route, and FDI beyond 49 per cent and up to 100 per cent through Government approval route. It has now been decided to permit 100 per cent FDI under automatic route for SBRT,” the official statement said.

“It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1st April of the year of the opening of first store against the mandatory sourcing requirement of 30 per cent of purchases from India. For this purpose, incremental sourcing will mean the increase in terms of value of such global sourcing from India for that single brand in a particular financial year over the preceding financial year, by the non-resident entities undertaking single brand retail trading entity, either directly or through their group companies. After completion of this 5 year period, the SBRT entity shall be required to meet the 30 per cent sourcing norms directly towards its India’s operation, on an annual basis,” the government said.

On FDI in the construction sector, the government said: “It has been decided to clarify that real-estate broking service does not amount to real estate business and is therefore, eligible for 100 per cent FDI under automatic route.”

The cabinet also decided to allow FIIs/FPIs to invest in power exchanges through primary market as well. So far 49 per cent FDI was permitted under automatic route in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 but FII/FPI purchases were restricted to secondary market only.

The Centre has also decided to relax the rules followed for approval of FDI proposals that are moved in the automatic route sectors.

As per the existing procedures, FDI applications involving investments from Countries of Concern, requiring security clearance as per the extant FEMA 20, FDI Policy and security guidelines are to be processed by the Union home ministry for investments falling under automatic route sectors. Cases pertaining to government approval route sectors requiring security clearance are processed by the respective administrative ministries.

“It has now been decided that for investments in automatic route sectors, requiring approval only on the matter of investment being from country of concern, FDI applications would be processed by Department of Industrial Policy & Promotion (DIPP) for Government approval,” the Cabinet press note said.

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India News

Telegram CEO Pavel Durov criticises India restriction, says leak networks shifted to other apps

Telegram founder Pavel Durov has responded to India’s temporary restriction on the platform ahead of the NEET-UG 2026 re-examination, arguing that the move affected ordinary users without stopping alleged leak networks.

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Telegram founder and CEO Pavel Durov has criticised India’s decision to temporarily restrict access to the messaging platform, arguing that the move failed to curb alleged exam leak operations and instead affected millions of legitimate users.

The restriction was imposed ahead of the NEET-UG 2026 re-examination as authorities sought to prevent the spread of leaked exam-related material and disrupt networks allegedly involved in malpractice.

In a public response, Durov said the action had inconvenienced a large number of users across India while those responsible for sharing leaked content had simply migrated to alternative platforms.

According to Durov, restricting access to Telegram did not eliminate the problem authorities were trying to address. He claimed that groups involved in distributing exam-related leaks quickly shifted their activities elsewhere, raising questions about the effectiveness of platform-specific restrictions.

The temporary curbs were announced by the government in the lead-up to the NEET-UG re-test scheduled for June 21. Officials said the move was aimed at safeguarding the integrity of the examination process following concerns about the circulation of leaked material online.

The restriction is currently expected to remain in place until June 22.

Durov also stressed that millions of Indian users rely on Telegram for communication, education, business activities and community engagement. He argued that measures targeting an entire platform can have wider consequences for users who have no connection to alleged wrongdoing.

The government’s action came amid broader efforts to prevent cheating and malpractice in competitive examinations. Authorities have been closely monitoring digital platforms and messaging services after reports that exam-related content was being circulated through online channels.

The debate has sparked discussions about how governments and technology platforms should balance examination security with access to digital communication services. While officials maintain that strong measures are necessary to protect the fairness of high-stakes examinations, critics argue that restrictions on entire platforms may not effectively stop determined offenders.

For now, Telegram remains at the centre of the discussion as authorities continue efforts to ensure a fair and secure conduct of the NEET-UG 2026 re-examination.

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Telegram restricted ahead of NEET-UG re-exam, NTA backs move to curb exam fraud

NTA has welcomed the Centre’s decision to temporarily restrict Telegram ahead of the NEET-UG 2026 re-examination, citing the need to prevent fraud and misinformation.

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NEET

The Centre has imposed temporary restrictions on messaging platform Telegram ahead of the NEET-UG 2026 re-examination, with the National Testing Agency (NTA) welcoming the decision as part of efforts to prevent exam-related fraud and misinformation.

The temporary curbs will remain in place until June 22, a day after the NEET-UG re-exam scheduled for June 21. Authorities said the action was taken following concerns that the platform was being misused by cheating networks and individuals circulating misleading claims related to the examination.

NTA says move aimed at protecting exam integrity

According to the NTA, the restrictions are intended to safeguard candidates from fraudulent activities and false information that could affect the fairness of the examination process. The agency stated that maintaining the integrity of the re-examination remains a priority as lakhs of students prepare to appear for the test.

The NEET-UG re-exam is being conducted after the original examination was cancelled amid allegations of question paper leaks and irregularities. Since then, authorities have been monitoring online platforms for suspicious activity and misleading content targeting candidates.

Restrictions linked to concerns over fake paper leak claims

In recent weeks, several reports surfaced about Telegram channels allegedly offering access to leaked examination papers. The NTA had repeatedly advised students not to trust such claims and referred suspicious links and posts for verification by cybercrime authorities. No official confirmation of any genuine leaked re-exam paper had been issued.

Authorities believe the temporary restrictions will help limit the spread of fake content and reduce opportunities for organised exam fraud in the days leading up to the re-test.

Wider efforts to secure the re-examination

The government and examination authorities have introduced several measures ahead of the re-exam, including monitoring social media platforms and creating channels for reporting suspicious claims related to NEET-UG 2026. The NTA has also urged candidates to rely only on official communications for updates regarding the examination.

With the re-examination approaching, officials say the latest action is part of a broader effort to ensure a fair and transparent process for all candidates.

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Abhishek Banerjee says will not bow to BJP after nearly 11 hours of ED questioning

After spending nearly 11 hours before the Enforcement Directorate, TMC leader Abhishek Banerjee said he would not bow to the BJP and accused the ruling party of using investigative agencies for political purposes.

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Abhishek Banerjee

Trinamool Congress leader and Diamond Harbour MP Abhishek Banerjee on Tuesday said he would not bow to the BJP after spending nearly 11 hours being questioned by the Enforcement Directorate (ED) in connection with an ongoing investigation.

Speaking after the questioning, Banerjee alleged that central agencies were being used to target opposition leaders and asserted that he would continue his political fight despite what he described as sustained pressure.

The TMC leader has repeatedly maintained that investigations involving him are politically motivated, a charge he has made on several previous occasions while appearing before central agencies.

His appearance before the ED comes amid a period of heightened political activity and multiple investigations involving leaders in West Bengal. Recent days have also seen Banerjee face summons and questioning in separate matters by state investigative agencies.

After leaving the ED office, Banerjee reiterated that he would not be intimidated and said he remained committed to his political responsibilities. He also accused the BJP of attempting to weaken opposition parties through investigative action, an allegation that the BJP has rejected in the past.

The Enforcement Directorate has not publicly commented on Banerjee’s remarks. The investigation related to the questioning remains ongoing.

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