Importance of Civil Air Transport to the Indian Economy

Civil air transport cannot be viewed as merely a system of moving people and goods from one place to another. The purpose of this study is to aid civil aviation policy makers, legislators and members of the public in gaining better understanding of the economic ramifications of civil air transport. The study, made for the Indian Airlines, seeks to define and, wherever possible, to quantify the important economic impact of civil aviation in relation to (1) employment and income multiplier, (2) foreign exchange and trade benefits, and (3) technological and unquantifiable spin-off. The major findings based on the paper are highlighted in Table A. Table A Highlights of Civil Aviation Direct-plus-Indirect Benefits to India in 1968-69 • 5% of India’s work force employed • Rs. 316 crores of incomes generated • Rs. 180 crores worth of gross foreign exchange generated • 5500 persons demestically carried daily • 82% of foreign visitors brought The contribution of civil air transport to the twentieth century progress is substantial and significant. A country that does not meet the challenges and maximise the benefits, excludes itself from the process of world revolution. The paper will attempt to specify and quantify the impact of the civil air transport on the Indian economy in terms of employment, incomes, expenditures, foreign exchange earnings, trade and exports, communication and commerce technological spin-off and other unquantifiable advantages.