....MONEY ....
THROUGH AIR ROUTE
There is so much debate on the government's proposal of 49% FDI in aviation industry ,some are saying it's a positive move and some are criticizing it .
Founder of Air Deccan G.R Gopinath says it's a good move ,it should have been done long ago.He says it's good for aviation because more money will come in,may be new players can start airlines because now they will have a strategic players with whom they can have partnership.
According to De Roni chif executive officer of Go-Air ,foreign investors might evaluate both opportunity to invest,in budget airlines and in international airlines .He says India is a huge market with 1.2 billion people living here with growing purchasing power, there is a huge potential.
Though at the same time this move is also being criticized ,Jantadal United's Shrad Yadav says that such decisions has not kept in view the overall situation of India.He mentions that this decision will create unemployment problem,and he further says that security system in aviation industry is also a big concern.
Yes,this move of government has pros and cons ,but ,I think ,in the current scenario this step looks as a ray of hope for aviation industry.This move may bring wonders as it has done in numerous other sectors of the economy like manufacturing,telecom,banking etc.FDI leads to efficiency and scale gains.It brings in competition
lowers price and accords choice to consumers.The liberalization in foreign investment rules provide platform to domestic companies so that they can diversify investment opportunities in other markets.
Foreign participation in India's aviation sector could be helpful for the area where both the opportunity and need is greater,there is a need for building aviation equipment capabilities of Indian industry.
The FDI move will inject capital into cash-strapped domestic carriers.According to a report in Economic Times one Hong Kong based company is in talk with Kingfisher airlines to invest about $280 million. .
It can be said if government accepts this proposal of 49% FDI in aviation ,many such deals may happen, and money may fly across the seven seas through air route ..
By
Rahul Raghuwanshi
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