The government has liberalised the policy on foreign direct investment (FDI), permitting up to 100 per cent stake through the automatic route in most sectors/activities of civil aviation, minister of state for industry Ashwani Kumar said in a written reply in the Rajya Sabha today.

''The policy on FDI, including policy for investment by person of Indian origin (PIOs), is reviewed on a continuing basis for addressing specific concerns, such as security, and providing a conducive investment climate to attract FDI,'' the minister said.

As per the revised policy, up to 49 per cent FDI is permitted in scheduled domestic airlines while non-resident Indians (NRIs) are allowed up to 100 per cent equity stake under the automatic route subject to no direct or indirect participation by foreign airlines and sectoral guidelines.

For non-scheduled airlines/chartered airlines and cargo airlines, FDI up to 74 per cent and investment by NRIs up to 100 per cent is permitted under the automatic route, subject to no direct or indirect participation by foreign airlines in non-scheduled and chartered airlines.

For ground handling services, FDI up to 74 per cent and investment by NRIs up to 100 per cent is permitted under the automatic route, subject to sectoral regulations and security clearance.

Insofar as the print media is concerned, the policy permits FDI, including investment by foreign institutional investors, NRIs, PIOs, up to 26 per cent in Indian entities engaged in news and current affairs with prior government approval.

Meanwhile,FDI inflows into the country dipped 26 per cent in this October at $1.49 billion, as compared to $2.02 billion in the same month a year ago.

Foreign equity inflows into the country had increased by 19.5 per cent in the same month last year.

While FDI inflows have increased by over 80 per cent in the April-October 2008 period at $16.67 billion against $9.25 billion in the same period last year, it is unlikely to hit the target of $35 billion.