AVIATION IN INDIA : AIRLINES & AIRPORTS - NEW CHALLENGES OF 21ST CENTURY
A) An Important Engine For Economic Growth
In the global and Indian scene there is rapid economic changes.
In this scenario, Civil Aviation is recognized an important vehicle for economic growth.
Over 2000 million passengers globally per year use airlines for leisure & business
Around 40% of the worlds manufactured goods by value are transported by air only.
Aviation industry contributes substantially in national exchequer through taxation by
B) Revenue Generation
Central, State and Local Govts around the world. Passengers, cargo handlers, pay Taxes
on air tickets & cargo consignments, service charges, FBTs etc.
Employees pay income taxes on their salaries
Opens up new markets.
Help in the growth in International trade.
Boost tourism & travel business.
Specialists in aviation related activities - Insurance, Surface transport etc.
C) Spin Off Benefits
The Aviation industry at a rough estimate creates about 30 million jobs & 50%
D) Employment Opportunities
estimated to be direct employment.
Proper research is needed to have right figure about employment opportunities.
Air Transport & Tourism
Aviation is the main link for boosting of tourism.
Nearly 98% of outbound travel is by air
Similarly about 90% tourist arrivals in India by air.
In the present context with the liberalized open sky policy and introduction of low
budget airlines, no frill airlines, domestic tourism has seen a big boom and many new
areas have been opened up for tourism activities.
Domestic air travel increased by more than 25% last year.
Open Sky Policy has also increased seat capacity and this boosted international
International travel increased by nearly 15% last year. Seat Capacity in the major
traffic generating markets during peak season was bottle neck for tourism growth.
With growth of tourism, it has contributed & boosted India's GDP.
It is estimated tourism contributed 5.8% in countries over all GDP.
Tourism linked with aviation industry can help in increasing foreign exchange
earnings, foreign exchange earnings 16% growth ($5 billion in 2005)
Tourism is the largest sector in the world wide export of good & services.
At over $560 billion, it is larger than automatic, chemicals, fuels & other sector
Tertiary/ supplementary benefits of tourism are huge.
The Satellites accounting figures of world travel & tourism council suggest that $ 11.33
billion travel & tourism Industry in India (2000) supported a $ 23.8 Billion travel &
tourism related industry.
Tourism backed by Civil Aviation can create more employment - Tourism with lower
investment generates more jobs than any other industry in the world.
As per WTTC, the travel & tourism economy in India which includes aviation, Hotel,
Entertainment, transport etc. currently account for 17.4 million jobs in India or 5.8% of
This has potential rise to 25 million jobs or 6.8% of total employment by 2010.
Tourism & Aviation links thus bring real economic efficiency.