Malaysian low-cost carrier AirAsia said on Wednesday it would launch operation in India from October, the first by a foreign air company in India's highly lucrative aviation market which has been closed to foreign competitors until now.

The company plans to invest 30 million U.S. dollars in a joint venture with the Tata Group, according to its chief executive officer Tony Fernandes.

Eyeing India's southern cities like Chennai, Bangalore and Kochi as its primary aviation market in the country, the company is also seeking to enter India's insurance and hotel market, he told local media.

Malaysia has close links with southern India's Tamil Nadu states as many Tamils live in the southeast Asian country and neighboring Singapore.