Stealing the Show

There is no doubt that India is one of the stars of the air show currently on in Paris. India alone accounted for almost seven billion dolla...

There is no doubt that India is one of the stars of the air show currently on in Paris. India alone accounted for almost seven billion dollars worth of aircraft deals thus far. Besides Jet Airways and Air-India, at least five other Indian airlines have committed to major aircraft purchases. This testifies to the multiplier effects of the recent deregulation of the airline industry. Getting the government out of the way has enabled the sector to boom and has translated into huge rewards for the flying public. It also indicates that India8217;s is going to be one of the most significant aviation markets of the 21st century. The market is now expected to grow at the rate of almost 20 per cent a year.

Our airlines are ready to fly. The question is whether our government will do all that it takes to allow them to soar. While airlines have taken advantage of every opportunity that a more open skies policy has brought, the industry as a whole remains hobbled by regulatory and infrastructural bottlenecks. The cruel joke is that Indian companies can fly thanks to deregulation. But whether the government will enable them to land smoothly is another matter. For one, India still does not have airports of international standard, and infrastructural changes in this area are slow in coming. India is already experiencing air traffic congestion, despite its current modest overall volume of flights. Investment in infrastructure and privatisation of airports are still not keeping pace with the growth of the industry. Upgradation of airports has been stalled by arcane procedures, bad politics and meaningless skirmishes over perceived fiefdoms. Now that we have seen the fruits of letting private airlines fly freely, we should allow private players to help transform our airports.

There are other shadows hanging over the industry as well. Our tourist infrastructure is below international standards in every respect. India has 8212; as an on-going series in the Express shows 8212; an astonishing heritage that is languishing due to neglect and squalor. The aviation industry will perform well below its potential if the overall climate for tourism remains lacklustre. The aviation industry is also potentially vulnerable to shocks, such as high fuel prices. But the fact that it is bullish at the moment when fuel prices are not exactly low is a sign of confidence. There is no reason then for India not to become a global aviation hub. This industry has the potential for generating jobs of every kind, from high value manufacturing to low value added service. If the government sheds it mai-baap mindset, the Indian economy 8212; not just a few aircraft 8212; will take wing.