Role of Aviation Industry in India GDP-Growth Factors
- The growth in the Indian economy has increased the Gross Domestic Product above 8% and this high growth rate will be sustained for a good number of years
- Air traffic has grown enormously and expected to have a growth which would be above 25% in the travel segment
- In the present scenario around 12 domestic airlines and above 60 international airlines are operating in India
- With the growth in the economy and stability of the country India has become one of the preferred locations for the trade and commerce activities
- The growth of airlines traffic in Aviation Industry in India is almost four times above international average
- Aviation Industry in India have placed the biggest order for aircrafts globally
- Aviation Industry in India holds around 69% of the total share of the airlines traffic in the region of South Asia
Role of Aviation Industry in India GDP-Future Challenges
- Initializing privatization in the airport activities
- Modernization of the airlines fleet to handle the pressure of competition in the aviation industry
- Rapid expansion plans for the major airports for the increased flow of air traffic
- Immense development for the growing Regional Airports
Role of Aviation Industry in India GDP-FDI Policy
Airports
- Foreign equity up to 100% is allowed by the means of automatic approvals pertaining to establishment of Greenfield airports
- Foreign equity up to 74% is allowed by the means of automatic approvals pertaining to the existing airports
- Foreign equity up to 100% is allowed by the means of special permission from Foreign Investment Promotion Board, Ministry of Finance, pertaining to the existing airports
Air Transport Services
- Up to 49% of foreign equity is allowed by the means of automatic approvals pertaining to the domestic air transport services
- Up to 100% of NRI investment is allowed by the means of automatic approvals pertaining to the domestic air transport services
Major Industries in India GDP
