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Etihad Airways' plan to buy a 24% stake in Jet Airways for $332 million has won the green light from the Indian government.

The deal is the first foreign investment in India's airline sector since ownership restrictions were eased last year.

AirAsia and Singapore Airlines have also announced plans to enter India's airline sector in separate joint ventures with Indian conglomerate Tata Group.

Foreign firms are now allowed to own up to 49% of airlines in India, with the Etihad approach to Jet Airways first announced in April.

The agreement will help Jet raise funds to pay for fleet expansion and pare debt after six years of losses caused by a price war and high fuel costs, Bloomberg reported.

The Gulf carrier also has holdings in Air Berlin, Virgin Australia, Aer Lingus, Serbia’s Jat Airways and A