Beleaguered Sectors

After witnessing a robust growth during 2009 & 2010, few sectors like infrastructure, capital goods, aviation are witnessing a slow growth rate or even a negative growth witnessed by aviation sector. While the major reasons for the other sectors to witness slow growth momentum may be attributed due to global factors, such as European financial crisis, the aviation sector’s woes is bombed by a double whammy.

On the one hand, aviation sector is witnessing an ever increasing fuel price increase which comprises of more than 60 per cent of overall expenditure, the government’s policy inaction towards FDI in aviation sector is much worse than anything else. All the three sectors – aviation, infrastructure, Capital goods are much capital intensive, the government’s policy indecisiveness is playing spoil sport in the overall growth rate of the GDP.