IATA’s Tyler says the fundamental problem is that India has a fragmentary approach to aviation policy that does not connect the dots in the value chain. “A coordinated ‘India Inc.’ approach that addresses the central challenges of infrastructure, costs, and taxes is urgently required,” Tyler says.
If India can establish a coherent aviation policy, the sector’s advocates point out, the economic and social benefits that derive from improved competitiveness and air connectivity would be enormous. The aviation industry accounts for close to 0.5% of Indian gross domestic product and 1.7 million high-productivity jobs. IATA estimates that the value added by each employee in air transport services in India is approximately 10 times higher than the Indian average.