Liberalisation can unleash enormous growth

By Vijay Kumar

The Indian civil aviation sector is experiencing explosive growth, with traffic increasing at near 30 per cent annually. There are important lessons to be learned from what is occurring. First, that reform, liberalization, and competition can unleash enormous forces of efficiency, growth and jobs. Information Technology, where the government historically had a light touch, was the first sector to take-off in India. The telecom sector, which the Indian Government deregulated a few years ago, was the second. The Indian civil aviation sector promises to be a third "thrust" sector of the Indian economy, largely because of the steps taken to open it up to competition.

Remarks by US Charge D' Affaires, Robert Blake at CII's Open Skies Conference yesterday.