Q1. Draw attention to the aviation industry’s contribution to regional development in India. Mention the difficulties faced by industry and the steps the government has made to promote aviation industry. (250 Words, 15 Marks)
Decoding the Question:
- Introduction: Give an overview of the aviation sector.
- Body:
- Mention the role of airways in regional development.
- Highlight the challenges faced by the aviation industry.
- Write about the measures taken by the government to promote aviation industry.
- Conclusion: Conclude with a suggestion on how to capitalise on the prospects of Aviation Industry.
Answer:
For a huge nation like India, where distances are so great and the topography and climatic conditions are so varied, air travel is absolutely necessary. In 1911, mail service between Allahabad and Naini, a distance of just 10 kilometres, saw the humble beginning of air travel in India. In terms of both internal and foreign passenger traffic, the country has the potential to rank among the top three countries in the world.
Role of Airways in Regional Development:
- Airports serve as a growth pole that, through spill-over and trickle-down effects, drives growth in the surrounding area.
- A region’s supporting infrastructure, such as its roads, railways, hotels, marketplaces, etc., is greatly boosted by aviation.
- Enhanced communication with isolated places may aid in drawing attention to local problems, which in turn may attract the attention of the government for resolution. So, isolation and severe regionalism can be avoided.
- According to the Ministry of Civil Aviation, the Indian aviation sector will provide 1 lakh direct employment in the next two years (2024) and 4 million by 2035.
- According to the World Travel and Tourism Council, tourism in India will be around 9.9% of GDP by 2028 and as per International Air Transport Association (IATA) 520 million people will travel to or from India.
Challenges Faced by the Aviation Industry:
- Due to a lack of qualified and skilled workers, the aviation industry faces fierce competition for workers, which has an unsustainable impact on salaries.
- Even though there are several airlines operating, there is still a shortage of regional connectivity.
- Some states’ unwillingness to give up tax breaks on Aviation Turbine Fuel (ATF) and other financial perks to entice airlines to operate in underdeveloped areas.
- The activities become more capital intensive as a result of the increased importation of aircraft due to the lack of a domestic aircraft manufacturing base.
- India’s maintenance, repair, and overhaul (MRO) sector needs to grow in order to provide for aircraft maintenance that is affordable.
Measures by the Government:
- The automatic route has permitted 100% FDI for both greenfield and brownfield projects.
- The 2016 Integrated National Civil Aviation Policy aims to promote the whole aviation sector chain in a coordinated way, including skill development, general aviation, MRO, and cargo. The UDAN scheme aims to improve connection to rural and regional areas of the nation and lower the cost of air travel.
To capitalise on the aviation industry, the government must act to improve the necessary infrastructure while carrying out the policies connected to it as efficiently as possible. The fair and inclusive synchronised expansion of the Indian civil aviation sector can be accelerated by building airports, rewarding airlines, and combining the resources of the Union and State governments.