At the recently concluded Routes Asia Strategic Summit 2013, Civil Aviation Minister Ajit Singh termed the 49 per cent FDI in aviation a significant policy decision that would change the country’s civil aviation sector.
He further opined that the industry is witnessing a revival after the government took various policy measures beginning to yield results. He also cited the Tata-Air Asia proposal and the interest evinced by Etihad as examples of growing business confidence in the Indian civil aviation sector.
“The general aviation business will emerge as a key driver of regional connectivity and economic development. 49 per cent FDI in aviation is the single most important policy decision, which will transform the civil aviation scenario.”
To boost international air travel, the government has liberalised grant of traffic rights to Indian carriers. “The new traffic rights have opened up several new international sectors and increased the traffic entitlements of our carriers by approximately 60 per cent.”
On the government’s thrust on infrastructure development, he said, “The Indian government envisages investment of US $ 12.1 billion during the 12th plan period, of which US $ 9.3 billion is expected to come from private sector.” India is the 9th largest aviation market globally, handling 121 million domestic and 41 million international passengers.
