Foreign direct investment in both helicopter services and ground handling has been liberalised, with the government permitting up to 100% foreign investment in the setting-up of a ground handling agency - without the requirement of government approval. However, the mandatory GHA licensing, which includes security clearances by the Directorate General of Civil Aviation, will still be required. At present, up to 49% of foreign direct investment is permitted in ground handling services under the automatic route; above 49%, and up to 74%, is only permitted with government approval.
Whilst airlines in India predominantly self-handle still, at some airports carriers have given contracts to the airport authority or to a handling company. However, foreign airlines are not permitted to self-handle and they tend to avail themselves of the facility of third party handlers.
Helpfully, the civil aviation ministry, in its draft policy, has affirmed that airlines will be allowed to self-handle at all airports. This was in response to carrier concerns that this option was being eroded.
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The light of liberalisation
The Indian government has opened the door a little within the ground handling sector.
