UPSC Civil Services (IAS) Exam 2016 : New Aviation Policy

UPSC Civil Services (IAS) is a yearly Affair and it requires a deep understanding of the Current Affairs Topics. Current Affairs plays a very important role in the IAS Preparation and is very much synchronised with other subject sections of IAS Syllabus.  Here we are providing a deep analysis of the new Aviation Policy.

Created On: Aug 26, 2016 18:44 IST

UPSC Civil Services (IAS) is a yearly Affair and it requires a deep understanding of the Current Affairs Topics. Current Affairs plays a very important role in the IAS Preparation and is very much synchronised with other subject sections of IAS Syllabus.  Here we are providing a deep analysis of the new Aviation Policy. INDIA is one of the fastest growing aviation markets in the world. At present Indian aviation sector ranks 9th  in the global market.

See here the Current Affairs Questions for IAS Exam

Open Sky Policy 1991

After independence very few steps were taken to bring  reforms  in this sector; One major reform which  government took in 1991 was open skies policy where,  government opened the skies to private players. It leads to the emergence of many private airlines on the scenes. This policy did not pay any attention towards infrastructure issues like number and size of airport. Maintenance repair and over hauling facilities were not developed in India.

New Avaition Policy

Recently government approved civil aviation policy to tackle such issues. It is for the first time that government introduced such a comprehensive and integrated policy. This policy aimed at increasing regional connectivity, boosting cargo operations and making it affordable.


1.    Make India 3rd largest aviation market by 2022. It reduced the air fares 2500 rupees for 1 hour journey and 1200 rupees for half an hour journey.
2.    Increase domestic ticketing to 30 crores.
3.    Increase cargo volumes to 10 million tonnes by 2027.
4.    For starting international operations, need of 5 years of domestic flying experience is done away.
5.    Focus on maintenance, repair and over haul (MRO) sector in order to develop India as a hub for south Asia.
6.    Creation of 3.3 lakhs skilled personnel by 2025.
7.    Development of green field airports and helipads.
8.    Promote “make in India”   in civil aviation sector.
9.    Enhance ease of doing business.

Impact on rail and road transport

As the major objective of the policy is to increase regional connectivity and making it affordable, it will certainly effect railway and the road transport. People will prefer to go by air , as it will be more time saving .The load on railways and on road transportation will decrease. Major rail routes can now be used for cargo transportation. It will reduce the price of cargo transportation and ultimately it will affect upon the rising prices of commodities. But we cannot say that this policy will make a big impact on rail and road transport. As major sections of Indians consists of large number of low income group people who still prefer to go by bus or railways.

Important Govt. Schemes

Impact on employment generation

The bright side of the policy is that it will largely contribute for the growth of our country. Government wants India to develop as a M.R.O  hub for South Asia. By this not only we can utilize our skilled man force and provide new avenues  of employment to our youngsters  but also it can become a good medium to earn handsome amount of money. As our labour cost is low, foreign airlines which are dependent on other countries can utilize India’s services at low cost.

5/20 rule

Policy is giving much stress on building of new airports and helipads in metros as well as in some cities. It will provide great boost to all sectors of economy. The policy has replaced of 5/20 rule by 0/20. Many new private airlines will appear on the scene. It will provide a big boost to start up airlines, which will lead to more competition and will bring more efficiency and quality in this sector.  Tarrifs will be reduced. It will also provide a big boost to tourism. It will facilitate regional and international trade. Cost of export will decrease and exporters will be able to earn more foreign currency.   Trade of perishable will increase.

Aviation Turbine Fuel

Reduced service tax and excise duty is another important  highlights of the policy. Reduced
service tax on flights for one year and reduced excise duty at 2% on ATF will contribute in the
reduction of air fares.  It will create a conducive environment for new trade avenues. Domestic
as well as international industries will show interest in investing in this sector.

Contribution to Economic Growth

As the government has planned to provide hassle free business environment and facilitative conditions for international flights, in long run air fares will become affordable and increased demand  will generate more economic activity and result in increased revenue.

Once India succeeds in becoming MRO hub for South Asia .It will be game changer for   India. The MRO business of Indian carriers is around Rs.5000 crore,  90% of which is currently spent outside India we can save  this amount and we can  attract foreign investment too and employment will be generated in sub sectors .

Important Economy Topics

Impact on local travellers

The Policy is going to benefit local travellers.  Affordable cost will benefit the common man. They can avail airways which save effort and time and can enjoy the luxury of hassle free travel. We can travel distant states and countries frequently. This increased mobility will strengthens our cultural and social relationships domestically as well as internationally. It will make an impact on health and education sector by promoting an access to quality medical and educational services.

Air travel is mostly confined to the one third of the urban population and is out of reach hundreds of millions of people. Only 70 million of India 1.2 billion flew domestically in 2014-2015 . The 300 million tickets a year by 2022 is not very ambitious. India has a ample scope where new airports and airstrips can be made in small towns which will benefit the local travellers and also boost economic activities in those areas.

No doubts this policy is quiet comprehensive and integrated covering all the aspects of this sector and promising for affordable and quality services. But the thing which is going to make a mark is how this policy is implemented. No compromise  should be made in providing an infrastructure of international standards and train youngsters according to the demand of this sector. It will be vital for ‘Transforming’ India and make regional connectivity a reality.

The Current Affairs Analysis helps in the IAS Prelims as well as IAS Main Exam. UPSC always ask the backgrounders of the Current Affairs and the IAS Preparation is highly dependent on the integration of the Current Affairs with the Traditional  Topics of Current Affairs with a clear cut Analysis of the Topic.

Click here for more Current Affairs Topics.

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