Lok Sabha Question No. 2072 (UNSTARRED), answered on 2019-07-04
Subject: Role of Civil Aviation in National Economy
Ministry: CIVIL AVIATION
Asked by: Nalin Kumar Kateel

.

UNSTARRED QUESTION NO.

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION LOK SABHA

2072

(To be answered on the 4th 2019) July

## ROLE OF CIVIL AVIATION IN NATIONAL ECONOMY

2072.

SHRI NALIN KUMAR KATEEL

## Will the Minister of CIVIL AVIATION

.`

.

be pleased to state: -

- (a) whether the Government proposes to make the civil aviation sector a maior attraction and to develop it as a major partner in the national economy and if the details thereof;
- (c) whether the Government has invited any foreign investment in the sector for its development and if $0, the details thereof including the progress made S0 far in this regard?
- (b) whether the Government has taken steps to prepare any roadmap for the civil aviation sector in the country and if so, the details thereof; and

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(2) and (b): Indian civil aviation sector has shown consistent double digit growth Of passenger traffic for more than four years in the past; To create & congenial environment for stakeholders which is also attractive for investors, the roadmap for holistic development of the civil aviation sector has been embodied in the National Civil Aviation 2016. It intrinsically recognises the multiplier effects of the aviation sector on the national economy: As per an International Civil Aviation Organisation (ICAO) the output and employment multipliers of general aviation are 3.25 and 6.10 respectively: The roadmap thus aims to provide an ecosystem for holistic and harmonized growth of various aviation sub-sectors; inter alia, through the following: strengthened domestic carriers and ground-handling services, Policy study,

- development of aircraft and component manufacturing in India,

upgraded and self-reliant maintenance; repair and overhaul (MRO) facilities,

- airport capacity expansion,
- strengthened synergy between air cargo and both foreign trade and ecommerce,
- promotion of air connectivity to regional; heritage and tourism destinations in India through RCS-UDAN (Regional Connectivity Scheme-Ude Desh Ka Aam Naagrik),
- upgraded air navigation, and
- skill development,
- improved safety and security:
- (c): With a view to modernize existing airports as to establish high standards and ease demand pressures on them, 100% Foreign Direct Investment (FDI) under automatic route has been allowed in brownfield airport Proiects This would als0 facilitate the development of domestic Sviation infrastructure; FDI for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline has been allowed upto 49% under autonestic route- For Non-Resident Indians (NRIs); 100% FDI will continue to be allowed under automatic route. Foreign airiines would be allowed to invest in capital 0f Indian companies operating scheduled and non-scheduled air transport services up to the limit of Zg% of their up capital; Such investment is subject to the condition, inter that Scheduled and NonScheduled Operator's Permit would be granted only to a company the nationals. paid alia,

` .

'

`

. `