Looming elections boosts aviation, media sector

Elections are a costly affair but this time with the Indian general elections around the corner not everybody is complaining. Sectors like paper, paints, aviation, transportation and even media will get a leg up. For an economy which is struggling to grow at 7% this fiscal, this accidental Keynesian boost is more than welcome.
If the Indian economy badly needs another stimulus, the forthcoming Indian general elections coupled with strained central finances have ensured that the much needed stimulus was not to be. But now ironically it’s the elections itself which could push in Rs 10000 crore into the economy and most of it in cash.
The Election Commission has been sanctioned a budget of Rs 1300 crore by the government. The state governments will spend another Rs 700 crore on its own account. Party funding has been estimated by the Centre for Media Studies at about Rs 1500 crore for most of the major national and regional parties. Add to this an estimated spend of about Rs 5000 crore by atleast 1500 candidates across the country.
Aviation industry sources expect total billing of about Rs 250 crore this season. The total media budget for parties across the political spectrum could be in the region of Rs 350 to 400 crore. With the demand for handbills, posters, pamphlets and the like in full swing, the industry is already on the way to hiring about 4000-5000 extra workers in the election season. And the car industry is also expecting heavy orders for deployment and is looking atleast at a Rs 50 crore billing opportunity.
16/03/09 Abhijit Neogy/CNBC-TV18/moneycontrol.com

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Categories: Indian Aviation- In General Mar 2009