Singapore Airlines (SIA) and Indian conglomerate Tata have received approval from India's Foreign Investment Promotion Board to set up a joint-venture carrier to be based in New Delhi.

This paves the way for SIA to take a 49 per cent stake in the full-service carrier with the remaining 51 per cent going to Tata.

With the all-clear from the foreign investment authority, both parties can now work on getting the necessary approvals from the country's civil aviation authority.

This is the third time in two decades that SIA and Tata are trying to gain a foothold in the Indian air travel market.