The Ministry of Civil Aviation and ICC steer India towards economic and tourism excellence
The Round Table Discussion on the "Role of Civil Aviation in promoting Indian Economy and Tourism" hosted by the Aviation and Tourism Committee of the Indian Chamber of Commerce (ICC) on March 22, 2024, at the India International Centre brought together a formidable array of speakers, including Shri Vumlunmang Vualnam, the esteemed Secretary of the Ministry of Civil Aviation. With a focus on civil aviation's pivotal role in enhancing India's economy and tourism sector, this gathering underscored the transformative power of aviation in national development. Sky's the Limit
Subhash Goyal, Chairman of the Aviation and Tourism Committee, ICC, highlighted the importance of civil aviation in job creation and poverty eradication. He pointed out that tourism, fuelled by robust aviation connectivity, is expected to be a major job generator, underscoring the government's vision to leverage tourism and technology as key drivers for economic growth. Goyal's remarks shed light on the direct and indirect employment opportunities stemming from this sector, emphasising the critical role of aviation in ensuring the influx of tourists, which in turn, supports the burgeoning tourism industry. Goyal has also been an avid advocator of the open sky policy. He shared, “With the fast pace we are surging ahead, we need to open the skies, and if we have open skies, it'll really help us propel growth.”
Fostering Growth Across Diverse Sectors
Nikhil Kanodia, Chairman of the Northern Region, ICC, delved into the historical roots and evolution of ICC, touching upon its national and international presence. His insights on the diverse sectors represented within the chamber, including manufacturing, education, tourism, civil aviation, and technology startups, illustrated the comprehensive approach ICC adopts towards fostering industry growth. Kanodia also celebrated India's progress in civil aviation, marking it a testament to the country's developing infrastructure and economic dynamism.
An Era of Irreversible Stability
Kapil Kaul, CEO and Director of CAPA India offered an analytical perspective on the Indian aviation industry's trajectory, comparing it with global trends. Kaul's detailed analysis of the deregulation patterns, financial challenges, and strategic consolidations in the aviation sector worldwide provided a backdrop for understanding India's journey towards establishing a more stable and growth-oriented aviation ecosystem. Optimistic about the industry's future, Kaul coined this era of aviation as being in an ‘irreversible stability phase.’
Further enhancing his positive outlook for the industry, Kaul added, “For the first time, we have 70 wide-body aircraft. You will see more wide-body orders going forward than ever before.” He emphasised the significance of government reforms, infrastructural enhancements, and the necessity for rationalising taxes and operational costs to foster a competitive and sustainable aviation landscape.
India’s Aviation Leap
Sanjiv Edward, Chief Commercial Officer at Delhi International Airport, expressed profound gratitude for the significant strides made under the current leadership, notably highlighting the restoration of open skies for cargo, which was a longstanding demand of the industry.
Edward underscored the promising growth trajectory of Indian aviation, driven by rising middle-income groups, healthy competition, and supportive government policies, projecting an optimistic future. He pointed out the expected exponential growth in passenger numbers, aligning with India's ambitious goals to attain the position of top air freight market by 2025. Reflecting on global perspectives about India's economic and geopolitical ascent, Edward emphasised the pivotal role of aviation in leveraging this growth for the nation's benefit. He stated, "We have been given a very ambitious target of achieving 10 million metric tons by 2030, approximately 3x growth from where we are currently, and I'm sure, it is very much within achievable limits."
Call for Collaboration
Vumlunmang Vualnam, Secretary, Ministry of Civil Aviation, highlighted the close linkage between transport, including air transport, and the travel tourism industry and emphasised the potential for enhanced collaboration in these sectors. Vualnam acknowledged the maturity and growth potential within the civil aviation and tourism sectors, encouraging direct engagement and dialogue with industry stakeholders to address specific challenges and opportunities. He noted, "I'm convinced that innovation, even more than in the past, as well as collaborations, would be essential for both sides."
Vualnam invited inputs and suggestions from the industry, emphasising a comprehensive approach to addressing issues, including the intricate aspects of baggage allowances and pilot duty times. Stressing the importance of sustainable growth beyond subsidies and the potential for collaborative route development under the RCS Udan scheme, Vualnam called for a shared effort to make new routes viable in the long term.