The Tata Group-owned airline Air India, in collaboration with Tata Advanced Systems, is set to invest Rs 2300 crores ($277.2 million) in Karnataka, as announced by the state government on Monday.
Under this partnership, Air India will oversee aircraft maintenance, repairs, and overhauls at the Bengaluru airport, while Tata Advanced Systems will focus on establishing manufacturing and research & development facilities within the state. Notably, Tata Advanced Systems specializes in crafting cargo and bulk cargo doors for Airbus’ A320neo family of aircraft.
This significant investment initiative is expected to create approximately 1,600 direct job opportunities and more than 25,000 indirect jobs within Karnataka, boosting employment prospects in the region.
With Air India holding the second-largest market share among domestic Indian airlines, this collaboration is poised to enhance its operations further.
This investment aligns with Tata Group’s broader strategy of expanding its presence across various Indian states. Recently, Tata Technologies committed to investing 150 billion rupees in Telangana. Additionally, Tata Group Chairman Natarajan Chandrasekaran hinted at plans to construct a semiconductor fabrication plant in Gujarat, underlining Tata’s continued investment in India.
The announcement of such investment ventures underscores the growing confidence of prominent companies and conglomerates in India’s economic landscape. This trend has been evident with investment promises made by various entities during key business gatherings like the Vibrant Gujarat Global Summit and the World Economic Forum held in January.
