India remains cautious about expanding air traffic agreements with the United Arab Emirates (UAE), despite a new report suggesting that increased bilateral rights could lead to lower airfares and significant economic benefits for Indian travelers. While aviation analysts argue that liberalization would enhance connectivity and affordability, Indian authorities have expressed concerns about the potential impact on domestic airlines.
According to the report, relaxing air traffic restrictions would allow more flights between India and the UAE, increasing competition and reducing ticket prices. This, in turn, could benefit millions of Indian passengers who frequently travel to the Gulf region for work, business, and tourism. Additionally, expanded air services could boost trade and tourism between the two nations, strengthening economic ties.
However, Indian officials have warned that granting additional rights to foreign airline hubs could divert traffic away from Indian carriers, affecting their ability to fill seats and maintain profitability. The government has maintained a cautious approach in recent years, balancing the demand for greater access with the need to support the growth of Indian airlines such as Air India, IndiGo, and Vistara.
The India-UAE aviation market is one of the busiest international corridors, with flights connecting major Indian cities to Dubai, Abu Dhabi, and other destinations. While airlines and industry experts advocate for increased capacity, the Indian government’s reluctance reflects broader strategic concerns about protecting its aviation sector. Discussions on the matter continue, with stakeholders weighing the long-term benefits of liberalization against the risks of increased foreign competition.
