With a strong and stable central government, high disposable income and low market penetration, there is great potential in the Indian aviation sector, said experts during a panel discussion held here Wednesday.
The experts also pointed out the challenges currently faced by the sector in terms of high debt, lack of infrastructure and others at the discussion organised by Confederation of Indian Industry (CII).
Speaking at the panel discussion on 'Aviation Sector in India-the New Growth Story', Prabhat Kumar, director general, Directorate General of Civil Aviation said the sector has good prospects due to factors like stable government, high disposable income and low level of market penetration.
Referring to the challenges faced by the sector -- high debt and lack of infrastructure, Kumar said there is a need for closer public-private synergies so as to optimise the opportunities available.
According to Kapil Kaul, CEO, CAPA, the Indian aviation sector is poised for significant growth, driven by massive investment in improving regional connectivity, a multi-fold increase in air connectivity and capacity augmentation.
Henry Steingass, regional director, South and SE Asia, US Trade and Development Agency and Palash Roy Chowdhury, managing director (India), Pratt & Whitney, agreed that India has the potential to become the third largest aviation market globally after the US and China.
Both informed the participants that they are closely working with the government of India in technology upgrading, sharing best practices, better utilisation of satellite navigation system and upgrading skill.
Pointing out various positives for the sector, Amber Dubey, partner and head-Aerospace and Defence, KPMG India said there are challenges like skilled manpower, lopsided taxation regime and others.