Editorial Simplified : 22nd June

Editorial Simplified : 22nd Day of June 2016

This Series of posts covers the essential Editorial from prominent newspapers. The Editorial from the newspapers are compiled by the Subject Teachers form the Academy and provided in notes format so that the aspirants does not waste their precious time in sifting through the newspapers. 

The aspirants are advised to bookmark this page for future reference 

Click on the tab below to read the Editorial Simplified for each newspaper

The Hindu

Editorial : Opening our skies


The editorial deals with the recent reforms in Foreign Direct Investment(FDI) policy especially the aviation sector reform and suggests changes required.
What has been done

  • The Central government unveiled last week a FDI policy reform purporting to make India the most open economy of the world.
  • At least in the aviation sector the declaration seems out of tune.
  • The FDI limit for aviation sector has been raised from 49% to 100%, for which automatic approval route till 49% is allowed.


Even if a scheduled airline investor agrees to be a junior partner, securing a scheduled operator certificate still requires an airline’s chairman and atleast two-thirds of directors to be Indian citizen and substantial ownership to be vested in Indian hands.
Analysis of reform and global trends

  • The Centre has admitted that this is an act to make domestic carriers more competitive for now and the process is driven by security concerns.
  • Instance of Australian norms might be sighted as they may be beneficial in Indian context as well. Australia has recently scrapped limits on airline ownership for flying in its airspace.

Concluding Remarks

India could have proposed a bolder reform in airline ownership reforms and dovetailed that with its vision of open sky.

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