Down but not out: The pandemic has shaken aviation. Here’s how to stir up animal spirits in it.

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A passenger waits at the Chhatrapati Shivaji Maharaj International Airport before boarding a plane, in Mumbai on May 28, 2020.

Synopsis

Aviation is one of the sectors hit worst by the pandemic globally. In India, privatisation of airports and the sale of Air India are expected to give the industry a shot in the arm. But to achieve long-term goals, the focus should be on expanding airport infrastructure and making India an international transfer hub.

One of the key themes of the Union Budget 2021-22 has been the government’s road map for privatisation and asset monetisation. If executed, the ambitious plan will not only bring in critical resources to fund the government’s large and capital-intensive programmes, but also help meet the burgeoning deficit. The government’s decision to remain in four core areas is laudable, and it could be a game changer in boosting India’s GDP growth,

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