An efficient civil aviation sector is important for India as it is inter-linked with other sectors in the economy and generates income and employment through global commerce and tourism, a study says.
“A well-managed civil aviation infrastructure and efficiently-run, competitive airlines are a must in today’s globalised world. The presence of such infrastructure and airlines in India can bring down transport and communication costs, promote commercial and cultural activity, create jobs, and ultimately unify people and markets,” said Shekhar Shah, Director General, NCAER.
The National Council of Applied Economic Research (NCAER) undertook the study on the economic impact of Emirates Airlines’ operations on the Indian economy.
Titled ‘Emirates in India – Assessment of Economic Impact and Regional Benefits’, the study was released by Pronab Sen, Principal Advisor in the Planning Commission at a function organised by NCAER here today.
According to the study, Emirates contributed $596 million to the Indian economy by way of $274 million in the air transport sector; $76 million in the petroleum and chemicals sector; $62 million in the manufacturing sector; $39 million in the trade, banking and insurance sector and $145 million in other sectors of the economy.
The Dubai-based airline has provided direct employment to 1,045 employees and supports a total of 72,323 jobs in India through its operations.
On the tourism front, Emirates has brought in 5,29,928 foreign tourists in India in 2010-11, as a result of which, $1,153 million were contributed to the economy as foreign exchange earning, the study suggests.
“For every $1 that Emirates contributes in the Indian air transport sector, it generates an additional $1.176 in the Indian economy. This means that the output multiplier for Emirates’ contribution in the Indian economy is 2.176,” said Tushar Nandi, who led the study, adding that the findings of the study were based on the data obtained from Emirates and sources from India’s official statistics.
The study found that Emirates’ operations had a role in enhancing air transport and tourism as it connects non-hub airports to a significant number of points in India which would otherwise not be directly linked.
If Emirates’ expands to four additional destinations in India: Amritsar, Pune, Mangalore and Trichy, apart from 10 cities from where they are operating, it would benefit the Indian economy by $106 million and would also lead to the creation of 13,011 jobs.
“In 2010-11, 65 per cent of the expenditure were on relatively small airports whereas only 35 per cent of Emirates’ direct contribution went to three big airports – Mumbai, Delhi and Chennai (in terms of passenger share). This indicates Emirates’ role in developing economic activities at non-hub points,” the study suggested.
Established in 1956, the NCAER is an independent, non- profit policy research institute committed to assist government, civil society and the private sector in making informed, evidence based policy and program choices and in implementing and evaluating them.