‘In­dia plans to in­vest $120b in air­port in­fra­struc­ture’

The Pak Banker - - MARKETS/SPORTS -

In­dia is plan­ning to in­vest over $120 bil­lion (Dh440.4 bil­lion) in the de­vel­op­ment of air­port in­fra­struc­ture and avi­a­tion nav­i­ga­tion ser­vices over the next decade with the civil avi­a­tion sec­tor poised for fast growth, said Pres­i­dent Pranab Mukher­jee on Wed­nes­day.

In­au­gu­rat­ing In­dia Avi­a­tion 2016 here, he said the sec­tor is poised for a faster and sus­tain­able growth with the de­vel­op­ment of 100 smart cities; new eco­nomic cor­ri­dors; more than 50 new air­ports and ex­pan­sion of ex­ist­ing air­ports. "The deeper air pen­e­tra­tion to smaller cities; bet­ter con­nec­tiv­ity to north­east­ern part of In­dia; higher dis­pos­able in­comes of the middle class of In­dia is ex­pected to fur­ther pro­pel the growth of In­dian civil avi­a­tion in­dus­try," he said.

Mukher­jee noted that In­dia reg­is­tered a growth of 14 per cent in civil avi­a­tion sec­tor dur­ing the last decade. With for­eign di­rect in­vest­ment (FDI) in air trans­port dur­ing the last 15 years touched the mark of $570 mil­lion, he said In­dia con­tin­ues to be a favourite desti­na­tion for for­eign in­vestors in civil avi­a­tion sec­tor. The govern­ment has al­lowed FDI through the au­to­matic route to the tune of 100 per cent in green field air­ports; he­li­copter ser­vices and sea­planes; main­te­nance and re­pair or­gan­i­sa­tions and fly­ing train­ing in­sti­tutes. He also pointed out that 49 per cent FDI is al­lowed through the au­to­matic route for do­mes­tic sched­uled pas­sen­ger air­lines and ground han­dling ser­vices.

"The open sky pol­icy; greater fo­cus on in­fra­struc­ture de­vel­op­ment; lib­eral FDI norms; ro­bust tech­ni­cal and en­gi­neer­ing ca­pa­bil­i­ties; as­sured sup­ply of skilled work­force in in­for­ma­tion tech­nol­ogy and com­mu­ni­ca­tion net­work has opened the doors to global play­ers. He called upon the global gi­ants to seize this op­por­tu­nity and take lead to forge long-term part­ner­ships. He also noted In­dian civil avi­a­tion mar­ket is grow­ing at a rapid pace and now ranks ninth in the world.

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