The aviation industry in India is set to achieve a new height in 2020. In the 2020 Aviation industry all set to witness exponential growth in the coming times. There are a lot of indications that show upcoming growth in the Indian Aviation Sector.
Indigo is set for new plans of take-off for Dubai and Doha and an increase in flight routes is expected to soon follow. We are also witnessing a growth in the regional air connectivity in aviation which presents itself as one of the huge opportunities for the 2020 Aviation Sector.
Here below are the key points that assure huge growth in Indian Aviation Sector.
Investment plan For 2020 Aviation Sector
According to data provided by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in the air transport industry of India (including air freight) reached US$ 1,817.23 million. The government has full stake FDI under automatic route in scheduled air transport service, regional air transport service, and domestic scheduled passenger airline. However, FDI over 49 percent would require the government of India’s approval.
India’s aviation industry is expected to witness Rs 35,000 crore equals to around US$ 4.99 billion investment in coming next four years. The government of India is planning to invest US$ 1.83 billion for the development of airport infrastructure along with aviation navigation services by 2026.
Key investments and developments in India’s aviation industry include:
- AAI has invested around Rs 15,000 crore for expanding existing terminals and constructing 15 new ones.
- The government of India has already signed an open sky agreement with Australia allowing airlines on either side to offer unlimited seats to six Indian metro cities and various Australian cities.
- The AAI plans to present Guwahati as an inter-regional hub and Agartala, Imphal, and Dibrugarh as intra-regional hubs.
- Indian aircraft Manufacture, Repair, and Overhaul (MRO) service providers are exempted completely from customs and countervailing duties.
Source: https://www.ibef.org/industry/indian-aviation.aspx
Government Initiatives For 2020 Airlines
Some major initiatives undertaken by the government are:
- The Government of India sanctioned the development of a new Greenfield airport in Gujarat, with an estimated investment of Rs 1,405 crore.
- The government of India is working on a blueprint to promote domestic manufacturing of aircraft and aircraft financing within India.
- The government of India organized the Global Aviation Summit in Mumbai which witnessed participation of over 1,200 delegates from 83 countries.
- Government of India’s National Air Cargo Policy Outline which envisages making Indian air cargo and logistics the most efficient, seamless, and cost and time-effective globally by the end of the next decade.
- The government of India already approved a proposal to manage six AAI airports under the public-private partnership (PPP). These airports are situated in, Jaipur, Lucknow, Ahmedabad, Guwahati, Mangaluru, and Thiruvananthapuram. AAI received 32 technical bids from around ten companies.
- The government of Andhra Pradesh is to develop Greenfield airports in six cities-Nizamabad, Kurnool, Nellore, Kothagudem, Ramagundam, and Tadepalligudem under the PPP model.
- The most awaited Regional Connectivity Scheme (RCS) has been launched.
Road Ahead
The 2020 Aviation Sector in India is largely untapped with amazing growth opportunities. Even by considering air transport still expensive for the majority of the country’s population, of which nearly 40 % is the upwardly mobile middle class it shows the same future growth.
With the right relentless and policies focus on quality, the interest of the passenger, and cost India would be well placed to achieve its vision of becoming the third-largest 2020 Aviation Industry.
Discussion on the Aviation Industry is referred incompletely without the inclusion of Aircraft Maintenance Engineering.
