Day 86 – Q.2 Air India’s recent order of 470 aircrafts is a testimony to India’s growing soft and hard power in the global arena. Comment. How does this massive investment in air travel infrastructure impact India’s standing as a global economic player? Discuss.

Air India’s recent order of 470 aircrafts is a testimony to India’s growing soft and hard power in the global arena. Comment. How does this massive investment in air travel infrastructure impact India’s standing as a global economic player? Discuss.

एयर इंडिया का 470 विमानों का हालिया ऑर्डर वैश्विक क्षेत्र में भारत की बढ़ती सॉफ्ट और हार्ड पावर का प्रमाण है। टिप्पणी करें। हवाई यात्रा के बुनियादी ढांचे में यह भारी निवेश वैश्विक आर्थिक खिलाड़ी के रूप में भारत की स्थिति को कैसे प्रभावित करता है? चर्चा करें।

Approach

Candidates can start the answer with basic idea about recent order by aviation company highlight how its testimony of growing power and how it will lead India to become global economic player.

Introduction

Tata Group-owned Air India (AI) placed two mega orders, adding up to a staggering 470 aircraft for 250 planes with Europe’s Airbus consortium, and 220 with Boeing Co. of the United States.

Body

Testimony of power in global arena:

• Aspirational Air India: It has put Air India in the league of “aspiring” global airlines. The debt-ridden carrier, which was taken over by the Tata Group in early 2022, plans to turn into “a world-class proposition”. Experts say the bulk order indicates Air India’s intent to reclaim its “pole position” in the domestic aviation market, as well as expand its presence in international routes.
• Global allies: Order goes far beyond Air India and India’s aviation sector. This was underscored by the lead taken by global leaders Prime Minister Narendra Modi, French President Emmanuel Macron, and US President Joe Biden in making the announcement. British Prime Minister Rishi Sunak also weighed in.
• Political signals: “India is also sending a strong political signal that it wants to remain attached to the West at a time when it has appeared ambiguous on Russian sanctions,”

Impacting Indian standing as global economic player:

• Largest order: This is the largest order placed by an airline in one go anywhere in the world, beating the 2011 order by American Airlines for a combined 460 aircraft.
• Potential to become the 3rd largest international market: The government and the industry say India could become the third largest international not just domestic aviation market given the huge gap between potential and current air travel penetration.
• Improves India’s global Standing: the deal is “important for the industry because, given the recent turbulence in the China market, the alternative growth market in India,”
• Help enter markets like the US: The purchase of wide-bodied aircraft like the A350s will allow Air India to enter markets like the US and Australia directly by offering non-stop flights from India to these places.
• Indian companies’ intent: The message seems to be that India and Indian companies are open to business with the world, irrespective of the region and geopolitics. The fact that the announcement has come in the year of India’s G20 presidency adds strategic value to the order.
• Global employer: Major Western economies are in the midst of an economic slowdown, and are looking to spur economic activity and support employment. After irking the West by ramping up its purchase of Russian crude, it is good optics for India to be seen as creating jobs in Europe and the US through the AI order.

Conclusion

Overall, India’s growing soft and hard power in the global arena is a result of a combination of economic, demographic, cultural, and military factors, as well as effective diplomacy. India’s continued growth and influence in these areas will be key to its ability to play a more significant role on the global stage in the future.