Singapore Airlines said its joint venture, Tata SIA Airlines, has received the go-ahead to start a full service airline.
It received today a "no objection certificate" from India's Ministry of Civil Aviation.
The Singapore carrier had earlier received the official go-ahead from India's Foreign Investment Promotion Board to set up a joint-venture airline in the country together with Tata Sons.
Tata SIA will now proceed to apply for the air operator's permit from India's directorate general of civil aviation.
In September 2012, India passed a law that allows foreign airlines to take equity stakes of up to 49 per cent in local carriers.
SIA holds a 49 per cent stake in Tata SIA Airlines, with Tata Sons holding the remaining 51 per cent share.
The jointly owned carrier will be based in New Delhi, and is expected to take to the skies by the middle of this year, according to an earlier Tata statement.