Air transport sector GDP share below 1%, says study

New Delhi: Though India witnessed a remarkable expansion in air transport sector in the past years, its contribution to country’s economy remains less than one per cent, National Council for Applied Economic Research said underlining the need for productive investment in the sector.
It also said that the air transport sector in India will continue to grow over the decade but needs the regulatory environment and investment in supporting infrastructure for further boost. “Air transport sector remains at the frontier of technological adaptation, generating employment and income at local levels, its contribution still remains less than one per cent of India’s GDP,” NCAER said in its latest quarterly review ‘Macrotrack’.
The total air passenger traffic in India has increased from 109 million in 2008-09 to 143 million in 2010-11, a 31 per cent increase in three years. International (20 per cent) and domestic (37 per cent), its share to India’s prosperity is negligible. Air transport is important because of the global orientation of the Indian economy. It is also important as growth in this sector benefits many other sectors of the economy.
01/01/12 Deccan Herald

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Categories: Indian Aviation- In General Jan 2012