Indian Aviation Ranked Number 5 Globally: Ranks 3rd in Domestic Air Travel

Indian Civil Aviation has appeared as the fastest growing industry during the last 3 years in India. Also, India is ranking now number 5th globally and also ranking 3rd in the domestic Air Travel. Moreover, it is poised to rank 3rd and overtake the UK to become the 3rd largest air passenger market in the next 10 years. Indian Aviation will also rise the working group and will widen the middle-class demography and is expected to boost the demand. There will also be a growth in the opportunities of the MRO industry by 2028 and is likely to grow from US$ 800 million to 2.4 billion in 2018. Under the automatic route, Foreign investment upto 49% is allowed. The government has also lowered the custom duty from 2.5% to 0% on different component parts like engines, for the manufacturing of aircraft by the public sector units of the Ministry of Defence. There is an investment to the tune of Rs.420-450 billion (US$ 5.99-6.41 billion). With the help of Public-Private Partnership, there is a growth in the Public-Private Partnership.
 
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Market Size:

According to the International Air Transport Association (IATA) in the next 10 years, India is expected to overtake the United States and China and will become the world’s 3rd largest air passenger market. The passenger traffic of India stood at 131.62 million in FY22 (from April-December 2021). International Passenger and Domestic Passenger traffic has declined at a CAGR of -9.02% and -28.64%, from FY16 to FY21 due to the restrictions related to the COVID 19 on flights in FY21. Domestic passenger traffic was estimated to be 105.2 million in FY21, down 61.7 percent year on year, and foreign passenger traffic was estimated to be 10.1 million, down 84.8 percent year on year, according to Indian airports. The average daily domestic passenger flight departures were greater than 5,857 in October 2021, with an average daily domestic traffic of greater than 7,00,000 air passengers.

Investments:

• Raghu Vamsi planned to build a 15 million US$ facility in Hyderabad for meeting Boeing’s needs as of August 2021.
• An agreement has been signed by IndiGo for investigating the possibility of using sustainable fuel in the planes in July 2021.
• Also, in August 2021, Spicejet has introduces 16 new flights.