Industry body Associated Chambers of Commerce and Industry of India (Assocham) today called for streamlining various taxes to encourage aviation Maintenance, Repair and Overhaul (MRO) facilities in the country to make it a global hub.
The trade body said India has huge potential to become a major hub due to low cost benefits, favourable geographical location and sharp upswing in air passenger traffic.
The Indian civil aviation sector is currently celebrating 100 years of existence but its share is just 1% in the $50-billion global MRO market, according to Assocham.
Passenger traffic of scheduled airlines jumped from 73 million in 2005-06 to 142 million in 2010-11, Assocham said.
"By a conservative growth rate of 10%, throughput is expected to be 540 million passengers by 2025," said its secretary general DS Rawat.
At the same time, cargo traffic during the period is expected to touch nine million tonnes from 2.33 million tonne in the last financial year.
India’s scheduled airlines have 430 planes now. Industry estimates suggest this figure is likely to go up to 1,500 by 2025.
Besides, the general aviation comprises 700 small planes and 300 helicopters.
In addition, the business jet fleet has about 140 aircraft. This is expected to grow to 2,500 aircraft and 900 helicopters, Assocham said.
"With a fleet size of Indian scheduled and non-scheduled operators likely to treble in the next one-and-a-half decade, the need for a strong domestic MRO industry gains ground.
"India’s unique geographical position offers an opportunity to become a global hub for international airlines as well," said Rawat.
