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Government All In: Revival and Reforms in India Aviation

India Aviation

The India aviation sector, including airlines, airports, and related services, have come under financial stress on account of the COVID-19 pandemic.

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  1. The India government has weighed in with steps to revive India’s civil aviation sector.
  2. Nearly Rs. 25,000 crores are to be spent for growth and development of the civil aviation sector within the next 4 to 5 years.
  3. Domestic operations have now reached about 50% of pre-COVID levels, and the number of freighters has increased from 7 to 28.

The Minister of State in the India Ministry of Civil Aviation, General (Retd.) Dr. V. K. Singh, said in a written reply to Shri M.V. Shreyams Kumar in Rajya Sabha today that the key outcomes have been in spite of the pandemic.

The details of major steps taken by the government to revive the civil aviation sector during this period, are, among other things, as follows:

  • Provide support to airlines through various policy measures.
  • Provide airport infrastructure through Airports Authority of India and the private operators.
  • Promotion of private investments in existing and new airports through the PPP route.
  • Provide an efficient Air Navigation System.
  • Through Air Bubble Arrangements, efforts have been made to ensure fair and equitable treatment to our carriers in the international sector.
  • Goods and Services Tax (GST) rate reduced to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services.
  • A conducive aircraft leasing and financing environment has been enabled.
  • Route rationalization in the Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption.
  • Coordination with stakeholders to resolve issues.

The government has also taken several measures for reforms in civil aviation sector of the country by providing top class infrastructure and facilities. Promotion of private investments in existing and new airports through the PPP route has taken place.

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Anil Mathur - eTN India

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