Regulation, heavy taxation and expensive infrastructure could restrict the Indian aviation industry’s future growth, according to IATA’s CEO Tony Tyler.
Speaking at an IATA event in New Delhi, Tyler said India could potentially become the world’s third largest aviation sector by 2029 but must overcome a number of challenges to achieve this.
“While demand growth is robust and some airlines are generating profit, sector-wide losses for India are still expected to exceed $1bn this year,” he said.
“Onerous regulation and processes, debilitating taxes and expensive infrastructure are holding back the industry’s ability to deliver greater economic benefits to India.”
Tyler also urged India’s government to grant “declared goods” status for aircraft fuel to limit state taxation, which he said can be as high as 30 per cent.