China may become Busiest Air Route from India
Currently, Singapore is the top aviation route from India. The growing thirst of Indian companies, big and small, to access Chinese markets has pushed up air travel between the two countries, making it the fastest-growing aviation route from India. Air traffic from India to China grew 17.9% in the first six months of 2011, beating overall international travel growth from the country, which stood at 10.9%, according to the International Air Transport Association. If this trend continues, China will soon overtake Singapore as the most favoured destination on the itinerary of Indian businessmen and executives.
Reasons:
- Several Indian pharma and IT companies and investment banks have set up shops in China
- 400 Indian companies, including IT majors such as Infosys, Wipro and TCS, power producers like Adani Power and Suzlon, and automobile maker M&M, that already have a presence in China.
- Commerce between the two countries has grown 20-fold in the past decade, touching $61.7 billion in 2010. In the first half of this year, trade volumes between the two crossed $35 billion, posting a year-on-year growth of 16.1%.
- Indian and Chinese economies expand in the coming years, trade between the two would see a significant increase.
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Month: Current Affairs - November, 2011