India's civil aviation policy is bearing fruit, set to reach new heights

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Last Updated17/02/2023

On February 18, 1911, a 23-year-old Frenchman, Henri Pequet, flew the first official airmail flight over the Yamuna River.
This 10-kilometre flight between Prayagraj (then Allahabad) and Naini was a part of the Industrial and Agricultural Exhibition and started India’s unique tryst with commercial aviation.

Third largest domestic civil aviation market: Today, India only stands behind China and the US.
Domestic passengers: They more than doubled from 60 million in 2014 to 143 million in 2020, prior to Covid-19.
More cheaper services: Many private airlines have attempted to attract India’s large middle class into becoming commercial air travellers by offering no-frills, cost-effective services.
Flight operations to Tier-2 & Tier-3 cities: In 2017, the Govt approved the revival of existing unserved and underserved airports and airstrips through the Regional Connectivity Scheme (RCS).
Huge maintenance, repair and overhaul (MRO) market size: The market size of the MRO sector in India stood at around $2 billion, catering to 15% of our domestic MRO work.

Availability of English-speaking engineers at affordable rates: It gives India a natural advantage in increasing its share of MRO-related work.
Govt’s new MRO Guidelines: These were aimed to encourage MRO organisations and OEMs to set up workshops in India.
Steps taken towards making India a global hub of MRO:
100% FDI permitted via automatic route for MRO
A liberalised policy for borrowing and lending in foreign currency and Indian currency on competitive terms for MROs
Reduction of GST from 18% to 5% with full Input Tax Credit

Agriculture: The Krishi Udan Scheme is focused on transporting perishable food products of farmers from the hilly areas, north-eastern states and tribal areas.
Rescue operations: Under Vande Bharat Mission, India operated air bubbles to facilitate passenger travel during COVID-19 waves. Operation Ganga rescued Indians from Ukraine due to the Russia-Ukraine conflict.

The synergy between tourism and civil aviation in propagating India’s tourism potential is well-known.
Tourism in all its forms, whether for faith or leisure, needs modern infrastructure and airways are one of the most crucial components.