ISAS Working Papers

The civil aviation sector in India has witnessed remarkable growth in the last few decades. This paper aims to analyse the promotion of competition in this burgeoning sector with particular focus on the political economy of several key reform events. First, the economic ideas governing policy-making institutions such as the Prime Minister's Office were important. Second, the balance of payments crisis of 1991 was important for explaining change in the sector. Third, over time, bureaucratic politics within the sector, with certain ministries supporting and others opposing reorganisation, was a key factor underlying the pace of reform. Last but not least, the ideology of the party in power also made an impact on the promotion of competition in the sector.