Advantage India
Robust
Demand
* Rising working group and widening middle-class demography is expected to boost demand.
* Country will become the third-largest aviation market in terms of passengers by 2024.
* India will require over 2200 aircraft by 2042.
Opportunities
in MRO
* By 2028, the MRO industry is likely to grow over US$ 2.4 billion from US$ 800 million in 2018.
* Revenues of domestic MRO services providers in India are expected to triple by FY28.
* Union Budget 2024-25 introduces incentives to boost MRO activities in aviation, including extending export and re-import periods for repairs and implementing a 5% uniform IGST on aircraft parts.
Policy
Support
* As per the present FDI Policy, 100% FDI is permitted in scheduled Air Transport Service/Domestic Scheduled Passenger Airline (Automatic upto 49% and Government route beyond 49%). However, for NRIs 100% FDI is permitted under automatic route in Scheduled Air Transport Service/Domestic Scheduled Passenger Airline.
Increasing
Investments
* Six international airports completed under PPP. The sector is expected to witness investments worth US$ 25 billion by 2027.
*JSW Group Chairman Mr. Sajjan Jindal announced a Rs. 16,000 crore (US$ 1.9 billion) investment to develop a 1,600 MW power project in Salboni, West Bengal, along with plans to establish an industrial park and enhance infrastructure at Durgapur airport.
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