NEW DELHI/AHMEDABAD -- The launch of Vistara, a joint venture between Singapore Airlines (SIA) and India’s Tata Sons, is timely as it coincides with Prime Minister Narendra Modi’s economic reforms, Second Minister for Trade and Industry S Iswaran said today (Jan 10).

“It is timely from the point of view of Singapore-India relations as it is the 50th year of our diplomatic ties… I think it is also timely from the point of view of a new government with a set of economic initiatives which, if they play out well, I think would certainly have valuable repercussions,” Mr Iswaran told reporters after landing in Ahmedabad from Delhi on a Vistara aircraft.

“For SIA, this is a project in the making for some time. I think seeing it come to fruition in the new year in the context of an event like the Vibrant Gujarat is a welcomed development,” he said.

The new airline, of which SIA holds a 49 per cent stake and Tata the remaining 51 per cent, flew the Delhi-Ahmedabad route for the first time today with Mr Iswaran on board the A320-200 fleet that departed the Indian capital at 10.50am local time (1.30pm Singapore time).

The Delhi-based, full service carrier made its maiden commercial flight yesterday from Delhi to Mumbai. Chief Executive Yeoh Phee Teik said the airline will increase its fleet to five aircrafts by March from the current three and plans to expand are in place.

“What you see right now is just a preliminary schedule… We are going to expand our route network, we are going to operate to new points and we may even increase the frequency of our operations to Mumbai and Ahmedabad… We’re in the midst of finalizing the schedule,” Mr Yeoh said.

Mr Iswaran noted that the joint venture airline is the first major aviation development from Singapore in India after Singapore Airport Terminal Services (SATS) inked a deal with Air India to cooperate on ground and cargo handling operations.

The presence of Singapore companies in India is set to grow, as the initiatives set out by the new government to liberalise the economy and attract overseas investments have fuelled interests from businesses to expand their operations to India, Mr Iswaran noted.

“I think what I would sense now is a renewed level of interest from some of the businesses that have already been here but also new business that is partly prompted by the new government of PM Modi and initiatives, some policy ideas he has announced and also his track record as Chief Minister of Gujarat,” he said.

Mr Iswaran is leading a 70-member delegation on a four-day visit to explore business opportunities in India. The delegation will attend the 7th Vibrant Gujarat Summit tomorrow, where Singapore is participating as a partner country for the first time. More than 20 Singapore companies will showcase their capabilities at the event.