The Government of India seems to function most expeditiously in importing aircraft, weapons, reactors, shopping malls etc — not in improving the courts, prisons, police, public utilities, public debt, etc. When the purchase of 43 Airbus aircraft surfaced, accusations of impropriety were made by Boeing — until the local Airbus representative said on Indian television that Boeing need not complain because they were going to be rewarded too and soon 68 aircraft were ordered from Boeing!
India imports all passenger and most military aircraft, besides spare parts and high-octane jet fuel. Domestic aviation generates near-zero forex revenues and incurs large forex costs — a debit in India’s balance of payments. Domestic airline passengers act as importers subsidised by our meagre exporters of textiles, leather, handicrafts, tea, etc. Currency depreciation will thus cause the business plans of all airlines of India to nosedive — the rupee has been steadily declining for more than a century.
What the PM and aviation minister needed to do before yielding to temptations of buying new aircraft was to act tough with the management and union of the nationalised airlines and stand up on behalf of the ordinary citizen and taxpayers, who, after all, are mostly rail or road-travellers not jet-setters.
Subroto Roy, Kolkata
