A ruling by India’s government last September to end more than a decade of protectionism in the aviation industry is expected to bring new investment to the sector and offer a lifeline to some of its carriers.
While India has played a significant part in the global aviation industry’s growth story, the country’s carriers found themselves struggling in recent years, following the introduction of a government policy in April 2000 barring international airlines from investing in the sector.
The policy remained in place for 12 years, upheld by successive governments, during which time the air transport sector attracted less than $500m in foreign direct investment (FDI), according to the Department of Industrial Policy and Promotion (DIPP). However, with protectionism now lifted, India will be hoping to attract significant support for aviation infrastructure, which is in need of a major overhaul, and cash-strapped domestic airlines.
14/03/13 Oxford Business Group
