on Market for aircraft and parts in India
Did you know?
It is only
a matter of time before foreign airlines are allowed into India's
domestic airline sector.
Aviation equipment and services
(in US$ million)
equipment and services
rate: US$1 = Rs.
*1997 figures are estimates
1997* market size (US$
|Air traffic control and service equipment
|Private sector participation in new airports on a BOT
|Specialised ground handling and terminal equipment
Points to be noted:
India's Ninth Five-Year Plan (1997-2002) has earmarked Rs. 4,000 crores
(approximately US$1,000 million at an exchange rate of US$1=Rs.40) for installation and/or
upgrading Airport Traffic Control/Air Traffic Systems (ATC/ATS), aviation ground support
facilities, upgradation/construction of new terminal buildings and runway facilities, and
conservation and safety equipment.
The entry of private airlines in the domestic aviation sector as a result of an
open sky policy will increase demand for aviation equipment. Even though most private
airlines had a bad start due to their inexperience in aviation as well as government
restrictions on them, they now seem to have recovered and hold good promise for the
Responsibility for constructing, operating and maintaining international airports
rests with the International Airports Authority of India (IAAI) and domestic airports with
the Airport Authority of India (AAI), except for airports involving the private sector.
The decision to allow private sector involvement in construction, operations and
maintenance of airports is a a further sign of liberalisation. In this connection, two
state governments (Kerala and Karnataka) have been given clearance for airports with
private sector involvement. These airports will be located in Cochin (in Kerala state) and
Bangalore (in Karnataka state).
Foreign companies should note that indigenous manufacturing capability exists in
India for most aviation communication equipment except the most sophisticated radar
systems. To reduce imports of such equipment, the government is encouraging the domestic
private sector to have technology tie-ups with foreign companies under which the local
companies would manufacture those same products after initial imports.