MARKET REFORMS SUPPORT FURTHER GROWTH
The Directorate General of Civil Aviation recently eased regulation
of the Indian aviation market. Foreign direct investment rules
have been reformed to allow foreign airlines to acquire up to
49 percent of an Indian airline. Also helpful is the expansion of
the e-Tourist Visa program, which dramatically streamlines and simplifies a visa acquisition process that previously deterred
tourism. Under consideration are taxation reforms, including
rationalization of aviation fuel taxes, which can currently reach 35
percent; reduction of taxes on maintenance, repair, and overhaul,
which encourage Indian airlines to outsource MRO to neighboring
regions; and reduction of duties on engine spare parts.