Effect of Budget on Aviation

Aviation  provides the key worldwide transport network, which makes it crucial for global business and tourism. It plays a key role in facilitating economic growth, particularly in developing countries like India. Aviation connects people and cultures all over the world.

The Govt of India understands the need and importance of civil aviation. Govt has allocated 6,602 crore for civil aviation, the detailed allocation is as follows :

Rs 4469.50 crore : Buying two new B-777 aircraft for VVIP .

Rs 1014.09 crore : UDAN SCHEME

Rs 650 crore : AIR INDIA



Rs 70 Crore : Bureau of Civil Aviation & Security

The push to UDAN scheme will be key factor for Indian Aviation. Most of the airlines are planning to procure small turbo prop aircraft for regional and small cities. The inter connectivity of states will boost the economy of India.

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When people travel fast by air, they save their time which in turn save their money. This will surely save millions of man hour every day . There will be thousands of jobs available for Pilots, Airhostess, AME and Ground Staff in coming 3-4 years. It will be very difficult for airlines to get trained staff at affordable salaries. This boom will impact increase in salaries of skilled employees like Pilots, AME and flight attendant.

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As per the Budget document, an amount of Rs 506 crore is to come for Air India in the next fiscal by way of IEBR (Internal and Extra Budgetary Resources).

IEBR refers to a company raising funds through internal resources and external borrowings. AAI is to mop up Rs 4,086 crore by way of IEBR.

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The document said that Grants-in-Aid is extended to AAI “as reimbursement of expenditure already done by them on the existing projects. The funds are provided for Pakyong airport”.

Among others, Rs 50 crore has been allocated for Indira Gandhi Rashtriya Udaan Academy and National Aviation University.


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