Measures Taken by the Indian Government in Aviation Sector

Government Initiatives for the Aviation Sector within the Make in India Framework

The aviation sector stands prominently among the 25 sectors earmarked under the Make in India initiative. To stimulate growth, several strategic measures have been undertaken by the government, yielding impactful outcomes. Notably, a 100% Foreign Direct Investment (FDI) allowance has been extended through an automatic route, encompassing both Greenfield and brownfield projects.

A significant paradigm shift has been observed in Indian airports, where they are adopting the Special Economic Zone (SEZ) Aerotropolis model. This innovative approach focuses on diversifying revenue streams through avenues such as retail, advertising, parking facilities, security equipment, and assorted services.

Integrated National Civil Aviation Policy 2016: Envisioning Progress

The Integrated National Civil Aviation Policy of 2016 unveils a visionary framework aimed at democratizing air travel. It envisions achieving remarkable milestones, targeting 30 crore domestic ticket sales by 2022, escalating to 50 crore by 2027, and concurrently propelling international ticketing to 20 crore by 2027. Furthermore, the plan aspires to elevate cargo volumes to 10 million tonnes by 2027.

Central Mission: Enabling Safe, Affordable, and Sustainable Air Travel

At its core, the mission revolves around ensuring secure, affordable, and sustainable air travel for both passengers and cargo, forging global connectivity. To achieve this, a comprehensive ecosystem is to be established, fostering robust growth in the civil aviation domain. This growth is anticipated to catalyze tourism, generate employment opportunities, and foster balanced regional development.

Strategic Objectives: Nurturing Holistic Aviation Advancement

The objectives are multi-faceted. They encompass the creation of an integrated ecosystem that nurtures the aviation sector's expansion, bolstering regional connectivity through fiscal incentives and infrastructural development. Additionally, streamlining processes through deregulation, simplified protocols, and e-governance is pivotal. This approach extends its embrace to the entire aviation value chain, spanning cargo, maintenance, repair, and overhaul (MRO), general aviation, aerospace manufacturing, and skill augmentation.

Elevating Training Facilities through UDAN Scheme

The UDAN Scheme is a pivotal endeavor geared towards amplifying connectivity to remote and regional pockets, fostering affordable air travel. Integral to the broader National Civil Aviation Policy, initiated in 2016, this scheme allocates nearly half the seats on Udan flights at subsidized fares. Participating carriers receive viability gap funding (VGF) shared between the Centre and respective states, facilitating their operations.

A Vision for Modernization and Tourism Catalysis

Embracing a broader vision, the government recognizes the modernization of aviation infrastructure as paramount. This perspective aligns with leveraging tourism as an engine of economic growth and employment generation, with aviation serving as a vital catalyst. Despite prevailing challenges, the potential for sectoral growth remains promising.

Navigating the Path Forward

In navigating the journey ahead, concerted efforts are warranted. The government must strategically bolster infrastructure in tandem with optimizing policy implementation efficiency. This approach is crucial to harness the sector's auspicious future in India, capitalizing on its potential as a cornerstone of economic prosperity.

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