India

A ruling by India’s government last September to end more than a decade of protectionism in the aviation industry is expected to bring new investment to the sector and offer a lifeline to some of its carriers.

Talk of a slowdown is rarely distanced from discussion of India’s current economic climate. However, carmakers and component manufacturers, who have flocked to the subcontinent since 1983, remain confident in the long-term economic health of the country.

The national rollout of the government Direct Cash Transfer (DCT) scheme in early January is the largest and most comprehensive overhaul of India’s subsidies and benefits distribution programmes to date. However, the programme’s quick introduction, as well as a number of other challenges, may prove problematic to its implementation and success.

The strong lure to foreign visitors has endured through the global financial crisis, leveraging on India’s diverse offering of history, cultures and landscapes. Foreign tourist arrival (FTA) growth in 2011 was twice the global average at 8.9%, according to the Ministry of Tourism (MoT), and further growth is expected to maintain a level of at least 7.5% per year in the decade ahead. Yet the backbone of revenue generation remains homegrown, which is a boon for both domestic and international markets alike.