NEW DELHI 26th November 2015 (WAM) — Emirates the world’s largest international airline and the National Council of Applied Economic Research (NCAER) in New Delhi today released the results of an economic impact study that measures Emirates’ contribution to the Indian economy.
NCAER estimates that Emirates’ operations have contributed over US$848 million annually to India’s GDP supporting over 86000 Indian jobs and generating almost US$1.7 billion in Foreign Exchange Earnings.
With India’s aim to become the third-largest aviation market by 2020 and the largest by 2030 the NCAER study emphasises the important contribution that Emirates makes to India’s economy and aviation sector. The report also forecasts the increased contribution that Emirates would be able to make if capacity entitlements were expanded.
Adnan Kazim Divisional Senior Vice President – Strategic Planning Revenue Optimisation and Aeropolitical Affairs Emirates Airline said “Emirates has been committed to India since we started operations in 1985.In the past 30 years we have progressively grown our services to India by increasing capacity and opening new routes. Today we operate 183 weekly flights to nine points across India[i] offering our customers in India seamless connections to more than 140 destinations and also facilitating inbound visitors from across our global network into India.”
“The NCAER study underlines the importance of air transport and its role as an economic driver in India. Aviation facilitates trade and tourism and creates employment in many different industries. Emirates’ annual operations alone support more than 86000 jobs across India and contribute US$848 million to the economy. We are confident that with increased capacity we can contribute even more to India’s economic growth and development by opening new conduits for trade and investment through our growing worldwide network.”
Dr. Saurabh Bandyopadhyay NCAER said “The current NCAER report observed that Emirates makes an important contribution to the Indian air transport sector in terms of passenger traffic and Foreign Exchange Earnings (FEE). The airline’s economic contribution to the air transport sector is seen to percolate to the economy at large through various multiplier effects. The study predicts further escalation of economic benefits for the Indian economy as Emirates grows the number of seats into India. This growth would result in direct economic contribution multiplier effect on output and job-creation along with an induced effect on tourism. Apart from the quantified benefits from Emirates’ operations in India the identified qualitative benefits also entreat an expansion of its operation in India.”
In February 2014 the aeronautical authorities of India and the UAE negotiated the first expansion of seat entitlements since 2008. As a result Dubai-based carriers were awarded an additional 11000 seats per week. The NCAER study models the economic value of potential future bilateral increases and forecasts that if Emirates were to operate an additional 4500 weekly seats between India and Dubai an additional 4800 jobs would be created Foreign Exchange Earnings would rise to US$1.8 billion with the arrival of almost 40000 more tourists a year.
If the biteral arrangements were expanded to allow an additional 13849 seats per week NCAER forecasts that Emirates’ operations would support 100405 jobs a year contribute US$987.8 million towards GDP and boost Foreign Exchange Earnings to US$2 billion per year.
Considering the breadth of Emirates’ network and how the demand for air travel is expected to double in the next 5-10 years in India Emirates is well positioned to bring a growing number of tourists and business travellers to the country further enabling trade and investment.
The report was launched in New Delhi today in the presence of Dr Saurabh Bandyopadhyay Project Leader NCAER; and Essa Sulaiman Ahmad Vice President – India and Nepal Emirates Airline.
NEW DELHI: Emirates and the National Council of Applied Economic Research (NCAER) today said that Emirates’ operations have contributed over US $848 million annually to India’s GDP supporting over 86000 Indian jobs and generating almost US $1.7 billion in Foreign Exchange Earnings.
“With India’s aim to become the third-largest aviation market by 2020 and the largest by 2030 the NCAER study emphasises the important contribution that Emirates makes to India’s economy and aviation sector. The report also forecasts the increased contribution that Emirates would be able to make if capacity entitlements were expanded” said the report.
Emirates operate 183 weekly flights to nine points across India
The Vijay Kelkar committee on revitalising public-private partnership (PPP) projects on Thursday submitted its report to finance minister Arun Jaitley suggesting measures to resolve contractual financing and implementation issues plauging the segment.
“We will go through the report and take policy actions as early as possible” economic affairs secretary Shaktikanta Das said. The report will be put up in the public domain soon he said. The terms of reference of the Kelkar committee included suggesting measures pertaining to contractual financial capacity building and design modifications among others. Some of the suggestions of the panel may require legislative changes which might require some time Das said. The 10-member committee headed by former finance secretary Kelkar was set up on May 26 2015.
With a slew of projects schemes and a range of new funding options the infrastructure space is set to get a boost from the government in FY16. Recognising that major slippages in the last decade were on the infrastructure front the government has budgeted another R70000 crore in public expenditure for infrastructure development. fe Bureau.
The Vijay Kelkar committee which was reviewing the public-private partnership model of infrastructure development has made recommendations to improve the financing of such projects.
The committee has analysed the risks involved and the existing framework of risk-sharing between the project developer and the government and given its recommendations.
“The mandate was to revive the past public-private partnership review it and redesign it by introducing best international practices and improve capacity building. We have looked into all aspects. The Finance Minister wants to implement the recommendations of the report as early as possible” said Kelkar after submitting his report to Finance Minister Arun Jaitley on Thursday.
Both Kelkar and officials in the Finance Ministry remained tight-lipped on the key recommendations. Shaktikanta Das Secretary Department of Economic Affairs while acknowledging that PPP projects are facing problems due to financing contractual and capacity issues declined to give any timeline for implementation.
Das said the report will be put in the public domain soon. “Obviously it will require some amount of inter-ministerial consultation. We have to see what needs to go to the Cabinet and if there is a legislative issue…we also have to go through it” he added. During the consultation period leading infrastructure players such as Anil Ambani’s Reliance Infrastructure had pitched before the Committee for a neutral regulator to look into all issues arising in public-private-partnership projects across sectors.
The players had also pointed out that it is unfair to hold the developer responsible for delays beyond their control. These could be delays related to land acquisition environmental clearances or other such regulatory approvals.
Top investors
L&T Reliance GMR and GVK are the top investors in PPP projects. The private players wanted contracts and commitments made by the public sector partner to be firm from the outset. The demand was for equal distribution of the risk in a PPP project between the public and private sector partners.
The committee was set up in May this year after the Finance Minister in Union Budget 2015-16 called for a need to revisit the PPP model of infrastructure development. The panel was to submit its report within three months but was given an extension.
Apart from its head Kelkar the 10-member committee included CS Rajan Chief Secretary Rajasthan; SB Nayar Chairman and Managing Director India Infrastructure Finance Company Ltd; Shekhar Shah Director-General NCAER; Pradeep Kumar Managing Director CBG State Bank of India and Vikram Limaye MD IDFC.
NEW DELHI: Economic think tank NCAER today marginally lowered GDP forecast at 7.4 per cent because of slowdown in agriculture due to deficient monsoon.
“This marginal fall is due to the anticipated slowdown in the agricultural sector. Industrial growth continues to gather strength while the outlook for the services remains mixed” National Council of Applied Economic Research (NCAER) said in a statement.
In August it had projected economic growth at 7.5 per cent for the current fiscal.
The Finance Ministry has pegged the growth rate for the financial year 2015-16 at around 8.1-8.5 per cent which now looks difficult to achieve as the growth in the first quarter worked out to be only 7 per cent.
It further said the overall demand remains sluggish because of weak external demand and dampened rural demand while investment shows weak signs of revival.
The industrial sector performed better with 4 per cent growth in the first half of the FY’16 as against 2.9 per cent in the comparable period of the last fiscal it said.
The improvement is mainly driven by the manufacturing sector with 4.2 per cent growth in the first half of the 2015-16 compared to 2.2 per cent in the corresponding period of the last fiscal.
“While the mining sector showed no growth electricity has recorded slower growth in the first half of FY16 versus FY15. Capital goods and consumer durables also show improved y-o-y growth signalling improved investment and consumption” it said.
However it said annual growth in consumer non-durables continues to be in negative territory.
With regard to agriculture sector it said the actual rainfall received during June-September period of 2015-16 was below normal.
Despite deficit rainfall it estimates overall food grain output during this year’s kharif season likely to be marginally higher compared to last year due to better rainfall conditions in areas where coarse cereals and pulses are grown.
On inflation NCAER said it has declined over the period of the last one and half years.
“Retail inflation declined by an average of 1.4 percentage points between 2014-15:H1 and 2015-16:H1. Wholesale Price Index (WPI) inflation fell sharply averaging 4.1 per cent (y-o-y) in the same period” it said.
