In order to remove the sluggishness of the aviation sector, the government may further relax the rules for FDI in the upcoming budget. Even airlines can allow FDI up to 100%. Apart from this, it is also possible to announce a new regulator named Civil Aviation Authority in place of safety regulator DGCA. The Budget 2020-21 can be presented in Parliament on February 1. Finance Minister Nirmala Sitharaman can lay the foundation for new reforms in the infrastructure sector. During the last year and a half, the flight to the region has slowed down a bit with the closure of Jet Airways. As a result, despite the government's desire for lakhs, there is no suitable buyer for Air India. No foreign airline is believed to be showing interest in buying Air India due to FDI restrictions. In such a situation, the government has become compulsive to relax the rules of foreign direct investment.

In the last budget, Sitharaman had indicated to move in this direction by saying that the government is considering raising the FDI limit in domestic airlines to more than 49 per cent. Currently, FDI is allowed up to 100% under the automatic route in MRO (maintenance, repair, overhaul) services in the aviation sector. But the FDI limit has been set at 49 per cent. The same experts believe that unless sufficient ownership is guaranteed, no foreign airlines can hardly come forward to buy Air India. With this, not only Air India, Jet Airways sales are also stuck due to FDI limit. Another important issue in the aviation sector is the overhaul of the safety regulator DGCA (Directorate General of Civil Aviation). The same is being discussed for 13-14 years, but so far no work has been done in that direction. In 2006, the UPA proposed to replace the DGCA with the Civil Aviation Authority (CAA). But later backed down.

Apart from this, now the Modi government is again moving in that direction. For this, a committee has been formed under the chairmanship of former Skill Development Secretary Rohit Nandan. Apart from being the CMD of Air India, Nandan has also served as Joint Secretary in the Ministry of Aviation. Has been given the responsibility to design a regulatory framework that, like the US Federal Aviation Authority (FAA), is the overall watchdog for aviation safety Work and do not have to stare at the FAA for everything. In the same aviation sector, the safety regulator is seen as a purely technical institution. Same where aeronautical expertise should get top priority. But in India, DGCA is still headed by some or the other IAS. The new regulator is believed to be able to overcome this flaw under the leadership of an aeronautical expert.

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