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Prospects for Air Services in Indonesia Under Modified General Agreement on Trade in Services: India–China Dimension

In: Trade, Investment and Economic Growth

Author

Listed:
  • Anil K. Kanungo

    (Lal Bahadur Shastri Institute of Management (LBSIM) Delhi)

  • Abhishek Jha

    (Jawaharlal Nehru University)

Abstract

The paper examines India’s potentiality and prospects in providing air services to Indonesia. It calculated RCA index to state though the value of RCA is less than 1 and registering around 0.6, yet in the past three years, there is a continuous rise in competitiveness of air transport services exports and expected to surge with favorable Indian government policies such as UDAAN scheme. It analyzes individual country’s exports, gross world output and percentage of exports to world’s gross output of air transport. India’s exports to gross world output is more compared to many important economies such as USA and China, thus suggests India has a head start in this segment, although India’s absolute level of gross world output is the lowest. It further argues that India is better equipped compared to China, and therefore, the opportunity can be utilized by Indian policymakers and negotiators to advocate for modifications in GATS annexure so that later on, air commercial services can be brought under India-ASEAN FTA. It examines how Indian and Chinese private native airlines can cater better overall to the markets of Indonesia if relaxing of GATS article 1 (3) which is currently under negotiation is implemented. The research methodology includes World Input–Output table and National Input–Output Table (NIOT) database. National Input–Output Table is used for evaluating Indonesia’s outlook in air services. This database was also consulted for authors’ own calculations. A literature survey suggests not much studies have been conducted in this area.

Suggested Citation

  • Anil K. Kanungo & Abhishek Jha, 2021. "Prospects for Air Services in Indonesia Under Modified General Agreement on Trade in Services: India–China Dimension," Springer Books, in: Pooja Lakhanpal & Jaydeep Mukherjee & Biswajit Nag & Divya Tuteja (ed.), Trade, Investment and Economic Growth, chapter 0, pages 375-396, Springer.
    • Handle: RePEc:spr:sprchp:978-981-33-6973-3_21
    DOI: 10.1007/978-981-33-6973-3_21
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