Airlines and engineering and construction companies head the list of foreign businesses interested in starting operations in India, according to the government database of new business registrations for FY24. 

Italy’s flag carrier Italia Transport Aero, Oman-based SalamAir, Swiss engineering firm Pini Group SA and Japanese builder Dainichi Consultant Inc. are among firms that have reported opening a business in India, according to data for FY24 from the ministry of corporate affairs. 

As many as 59 foreign companies registered in India in FY24, compared with 50 in FY23, as per the ministry’s data.

Other sectors

IT and consulting, electronics and education are among the other sectors where overseas entities are registering for doing business in the country. 

Italia Transporto Aereo S.P.A set up a place of business in India effective from 1 June 2023, as per the ministry records seen by Mint. In April 2023, Salam Air SAOC a company originally incorporated in Oman informed the ministry that it too had established a place of business in India. 

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SalamAir on 29 May 2024 announced that it was adding Delhi to its destinations, starting 2 July 2024. The company plans to operate twice-weekly flights to Delhi, with services on Tuesdays and Thursdays, the company stated.

Uganda National Airlines Co Ltd too informed the Indian government in September last year that it has set up a place of business in India from 10 September. 

Aircraft and defence producer Airbus Defence and Space SA, a company originally set up in Spain, has started operations in India, the company informed the ministry last July.  

Airbus Spain spends about €2,200 million annually on Spain’s national supply chain, generating exports worth more than €4.3 billion a year and providing a GDP contribution of €3.57 billion, according to information available from its website. 

The most recent, Vietnam Airlines, reported its entry in January 2024. 

Analysts said strong demand and stable growth predicted in the aviation sector is helping to attract investments. “With two stable airline groups in business, there remains no harm to the growth story,” Ameya Joshi, an independent aviation analyst, said, referring to IndiGo and the Tata Group. 

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In the January to March period of 2024, 8.5 million people travelled to India, compared with seven million in the same period a year ago. On the other hand, 9.3 million flew out from India in the first three months of this year, compared with 8.1 million in the comparable period a year ago, as per data available from the Directorate General of Civil Aviation. 

“Over a longer horizon, the Asia Pacific region is likely to see the most rapid growth in passenger traffic among all regions,” the International Air Transport Association said in its December 2023 report titled ‘Global Outlook for Air Transport — A local sweet spot.’ 

By 2040, the region would make up more than half of global passenger demand, the report said.

One of the foreign companies which reported starting operations in India in FY24 is Japan High Speed Rail Electric Engineering Co Ltd, a special purpose company partnering with National High Speed Rail Corp Ltd for the Mumbai-Ahmedabad bullet train project. 

US-based engineering services company Modjeski and Masters and Switzerland’s Pini Group, specializing in design and management of complex engineering. have also reported setting up operations in the Indian market. Experts said the government’s accelerated capital expenditure is creating a demand for engineering and construction service companies.

Foreign investment in aviation is not limited to airlines. Companies for maintenance, repair, and overhaul (MRO) as well as airport infrastructure are a part of the newly registered foreign entities in India.

Mavahir Shree International Pvt. Ltd., a Kathmandu-based company, which reported its operations in India in April 2023 specializes in building runways for airports.

Emails sent on Friday to the companies seeking comments for the story remained unanswered at the time of publishing.