Finance Minister Nirmala Sitharaman said, in a report in PTI, India’s aerospace and civil market is on a high growth trajectory and invited US-based aircraft maker Boeing to ramp up investment in the country.
During an interaction with a delegation from Boeing comprising of their global senior leadership team, Sitharaman highlighted the opportunities available in India for relocating companies in the form of not just a captive market but also the chance to be a hub for serving the region as a whole and this can be rewarding for companies from a business point of view.
“In reference to the recent bulk order for aircraft placed by Indian companies, FM stated that India’s aerospace and civil market is on a #HighGrowth trajectory & also informed the group about aircraft leasing operations being undertaken by banks in GIFT-IFSC @GIFTCity,” a finance ministry said in a series of tweets.
In the context of India’s geographical advantage, the minister underlined India’s focus on repositioning itself as a maintenance, repair, and operations (MRO) hub that can potentially serve the region from Europe to Africa to Far East.
Talking about India’s journey towards becoming the third largest economy in the world, she apprised the group of the visionary leadership of Prime Minister and the vision for the next 25 years Amrit Kaal, while leading India to mark 100 years of independence.
Referring to AmritKaal, Sitharaman said the key focus of the Government is to benefit the citizens of India through the four ‘I’s of–Investments, Infrastructure, Innovation and Inclusivity.
Boeing currently counts SpiceJet, Akasa Air and Air India group as its customers.
“We are forecasting airlines to rebound quickly and add 25 per cent-plus percent annual seats back into the market,” Dave Schulte, the managing director for regional marketing at Boeing Commercial Airplanes said.
India’s airlines will lead air traffic growth through 2040, growing at a rate of 6.9 per cent. The growth for the South East Asia market is pegged at 5.5 per cent, China (5.4 per cent), Africa (5.4 per cent) and Latin America (4.8 per cent), Boeing said in a presentation.
However, Boeing highlighted many risks that Indian airlines face including high fuel price and low yields in air tickets. According to the company, fuel costs are 90 per cent higher for Indian carriers while compared to their global counterparts, Indian airlines can charge one of the lowest fares in the world for similar distance of travel.
