Foreign airlines, realty firms flock to India: 59 new registrations in FY24

Education, IT and consulting, electronics among sectors attracting overseas entities

Foreign businesses, especially airlines, engineering and construction firms, showed interest in starting operations in India in 2023-24 (FY24), Livemint.com reported on Thursday.

As many as 59 foreign companies registered in India in FY24 compared to 50 the previous year, according to data from the Ministry of Corporate Affairs.

Education, information technology and consulting, and electronics are among the other sectors attracting overseas entities, the report claimed.

Among new entrants, notable companies include Italy’s flag carrier Italia Transport Aero, Oman-based SalamAir, Swiss engineering firm Pini Group SA, and Japanese builder Dainichi Consultant Inc., as reported by the ministry of corporate affairs for FY24.

Italia Transporto Aereo S.P.A. started business in India in June 2023. SalamAir, originally incorporated in Oman, also established a place of business in India in April 2023 and announced new routes to Delhi starting 2 July 2024, the business-daily reported.

Other aviation-related companies have also expanded their operations in India. Uganda National Airlines Co Ltd reported setting up a place of business from 10 September of last year. Airbus Defence and Space SA, initially established in Spain, began operations in India in July, contributing significantly to Spain's economy with €2,200 million annual spending and generating exports worth over €4.3 billion. Vietnam Airlines joined this list in January 2024.

The Directorate General of Civil Aviation data shows a significant increase in travel to and from India. From January to March 2024, 8.5 million people travelled to India compared to seven million in the same period the previous year, while 9.3 million flew out of India, up from 8.1 million a year ago. Projections suggest that by 2040, the region will account for more than half of global passenger demand.

Engineering and construction sectors are also witnessing substantial foreign investment due to the Indian government's accelerated capital expenditure. US-based Modjeski and Masters, Japan High Speed Rail Electric Engineering Co Ltd partnering with National High-Speed Rail Corp Ltd for the Mumbai-Ahmedabad bullet train project, and Switzerland’s Pini Group are among the engineering firms setting up in India.

Mavahir Shree International Pvt. Ltd., a Kathmandu-based company specialising in building airport runways, reported its operations in India in April 2023, the report added.

Foreign investment in aviation also extends to maintenance, repair, and overhaul (MRO) services, and airport infrastructure.