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Importance of aviation sector in India | ICRI India
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Importance of aviation sector in India

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The Role of Aviation Industry in India GDP in the past few years has been phenomenal in all respects. The Aviation Industry in India is the most rapidly growing aviation sector of the world. With the rise in the economy of the country and followed by the liberalization in the aviation sector, the Aviation Industry in India went through a complete transformation in the recent period. The aviation sector has become the most critical segment in the economic development of a nation. It plays a vital role in moving people or products from one place to another, be it domestic or international, especially when the distances involved are far. Stiff competition and favorable initiatives of the Government of India added fuel to enlarge both flights and fleets. In a highly competitive environment, the provision of high-quality services to passengers is the core competitive advantage for an airline’s profitability and sustained growth.
  • Now, ordinary citizens were able to easily access the aviation service from their respective air terminals. Service quality conditions influence a firm’s competitive advantage by retaining customer patronage, which in turn increases market share. Delivering high-quality services to passengers is essential for airline survival, so airlines need to understand what passengers expect from them.
  • The impact of civil aviation as a sector on the general economic activity has been studied systematically and documented for some of the Western developed countries. By itself, the Civil Aviation Sector contributes significantly to the process of development by generating employment opportunities directly and indirectly besides facilitating the enhancement of productivity and efficiency in the movement of goods and services.
  • Air transport has contributed to the rapid growth in India’s international trade in recent decades by offering a reliable and faster mode of transport services to move products and personnel across 150 long distances. Therefore, sustaining a viable aviation industry is vital if the economy is to reap the full benefits of future growth in foreign trade and investment.
  • Civil Aviation sector makes a substantial contribution to public finances. These include the Service tax paid by air passengers, corporation tax paid by airline companies, airport operators and other ground support service enterprises, MRO (Maintenance Repair and Overhaul) firms and income tax paid by their respective employees, besides the revenue collected through taxes on fuel and equipment.

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