INTRODUCTION
Aviation Industry
The term ‘aviation’ is most commonly used to describe mechanical air transportation, which is carried out using an aircraft. The two main aircraft types are airplanes and helicopters, but most modern definitions of the word ‘aviation’ extend beyond this to include unmanned aircraft, such as drones.
The importance of the modern aviation industry is difficult to overstate. Still, one of the main reasons for this importance is the globalized nature of the industry, helping to connect different continents, countries, and cultures. As a result, global aviation has been key in facilitating efficient travel to distant places, enriching many lives in the process.
The aviation industry has also been a key contributor to global economic prosperity, not only because the tourism industry boosts local economies but also because it has allowed for improvements to global trade.
Meanwhile, the aviation industry also directly provides millions of jobs for people around the world, with examples including everything from pilots and cabin crew, to air traffic controllers and aerospace engineers. On top of this, the aviation industry has helped to create many jobs in the wider travel and tourism industry too.
INDUSTRY SCENARIO
Through the National Civil Aviation Policy 2016 (NCAP) the government plans to take flying to the masses by enhancing affordability and connectivity. It promotes ease of doing business, deregulation, simplified procedures, and e-governance. In April 2020, the Goods and Services Tax for MRO services rendered locally was reduced from 18% to 5%. The ‘place of supply’ for B2B MRO services was changed to the ‘location of recipient’, enabling Indian MRO facilities to claim zero-rating (i.e., export status) under GST laws on MRO services rendered to prime contractor/OEM located outside India.
This has been an extremely crucial policy amendment as it will encourage global participation in the Indian aviation sector by allowing foreign MRO operators to subcontract MRO work to Indian entities without any extra tax liability.
The Regional Connectivity Scheme or UDAN (‘Ude Desh ka Aam Nagrik’) is a vital component of NCAP 2016. The scheme plans to enhance connectivity to India's unserved and under-served airports and envisages to make air travel affordable and widespread.
More than 2.15 lakh UDAN flights have operated and over 1.1 Cr passengers have availed the benefits in UDAN flights as on 30th November 2022. The Government has set a target to operationalize 1,000 UDAN routes and to revive/develop 100 unserved & underserved airports/heliports/water aerodromes (including 68 aerodromes) by 2024.
ROAD AHEAD
Turning Ideas into Reality
In August 2022, the Indian government launched India’s first double-decker electric bus in Mumbai. Looking long term, the government feels it is necessary to overhaul the country’s transportation system. It is working to create an integrated electric vehicle (EV) mobility ecosystem with a low carbon footprint and high passenger density with an emphasis on urban transportation reform. The government's strategy and policies are intended to promote greater adoption of electric vehicles in response to growing customer demand for cleaner transportation options. The Government of India expects the automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023. India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles.
Welcome to Jaikvik Business India Private Limited, a renowned company in the field of making Detailed Project Reports, Debt Syndication, Financial Advisory Services, Enterprise Evaluation and other business services.
Quick Links
Popular Links
© Jaikvik Business Private Limited. All Rights Reserved.