Civil Aviation Secretary Rajiv Nayan Choubey said on Friday it was not possible for a foreign airline to fully own an Indian carrier, but he would examine whether it could be done through an investment partner.
He said the government had not received any proposal from Qatar Airways to start a local airline.
Last week, Qatar Airways Chief Executive Akbar Al Baker said he wanted to set up a full-service Indian carrier to fly domestic routes, with around 100 narrowbody planes. Under current rules, foreign airlines are still restricted to a maximum stake of 49 per cent in Indian carriers, but other foreign investors may own up to 100 per cent.