Invest In India
CIVIL AVIATION
- During the last 3 years, the country has witnessed major growth in Civil Aviation
Industry and has stood at third position in global ranking with respect to domestic civil
aviation market and is the ninth largest civil aviation market in the world.
- In F.Y.19-20 (April – October 2019) following was the data with regard to freight and
passenger traffic:
- Domestic freight traffic stood at 0.80 million tonnes
- International freight traffic was at 1.20 million tonnes.
- Domestic passenger traffic reached 160.16 million and
- International passenger reached 39.43 million.
- In the year 2019-20, Government of India has given a contract for the development of
international airport at Jewar, in the state of Uttar Pradesh for an estimated value of Rs
300,00 crores (USD 4Bn) to a Swiss company.
- Up to 100% FDI in civil aviation in India is permitted in Non-scheduled air transport
services under the automatic route.
- Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic
route.
- Up to 100% FDI is permitted in MRO for maintenance and repair organizations; flying
training institutes; and technical training institutes under the automatic route.
- Up to 100% FDI in aviation sector is permitted in Ground Handling Services subject to
sectoral regulations & security clearance under the automatic route.
- 100 % FDI allowed under automatic route in scheduled air transport service, regional
air transport service and domestic scheduled passenger line. However, investment over
49% would require government approval.
- Aim to increase the number of operational airports to 190-200 by FY40 to cater to the
rising air traffic.
- Some recent announcements in this sector are as follows:
- 6 more airports to be privatized.
- India to become a global hub for Aircraft Maintenance, Repair and Overhaul
(MRO), tax rates to be rationalized.
