India's insular FDI policy in aviation to hurt sector: IATA

New Delhi: International aviation body IATA today said India's insular approach to FDI in aviation is going to hurt the sector which needs an investment of $140 billion in the next 20 years.
"The success of Indian airlines should not be compromised with an isolated policy. The insular approach to foreign direct investment (FDI) in aviation (is going) to hurt sector majorly," IATA Chief Giovanni Bisignani said at a CII Conference on Aviation here.
Giovanni further said that 10.3 per cent service tax imposed by the finance ministry on the aviation industry is illegal by International Civil Aviation Organisation rules.
The government has imposed a service tax of 10.3 per cent on the gross value of tickets of all classes on the domestic flights and economy class on international routes.
23/09/10 Press Trust of India/Business Standard

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Categories: Foreign Sep 2010, Indian Aviation- In General Sep 2010