Foreign investment cap of 49 percent in India airlines includes FDI, FII

A security personnel stands guard as Air India's Dreamliner Boeing 787 taxies upon its arrival at the airport in New Delhi September 8, 2012.

NEW DELHI (Reuters) - India's foreign investment limit of 49 percent in local airlines includes both foreign institutional investments and foreign direct investment, according to a government document seen by Reuters.

India on Friday allowed foreign airlines to buy stakes of up to 49 percent in local carriers, in a much-awaited policy move that provides a potential lifeline to the country's debt-laden airlines by opening up a fresh source of funding.

(Reporting by Rajesh Kumar Singh; Editing by Sunil Nair)