India to become 3rd largest Aviation market in world by 2020

India to become 3rd largest Aviation market in world by 2020

India is among the fastest growing and currently the ninth largest civil aviation market in the world.

India is likely to become the third largest aviation market in the world by 2020 after the US and China. At present, India is among the fastest growing and currently the ninth largest civil aviation market in the world. The Indian aviation market witnessed 224 million passengers in 2016. According to Airbus, India will be one of the top three aviation markets globally in the next 20 years. Airbus is expecting an annual growth rate of over 11 per cent for the domestic market in India over the next 10 years, while the combined growth rate for domestic and international routes would also be more than 10 per cent. The market is also estimated to have 800 aircraft by 2020.

The Indian aviation sector is likely to attract investments worth $15 billion by 2020. The private sector contribution would be around $10 billion. India has more than 86 scheduled international airlines constituted of 5 Indian carriers and 81 foreign carriers. Currently, India has air connectivity with 55 countries through more than 300 routes. Passenger traffic is growing at 20 per cent per annum in the last two years.

Investment Opportunities
Approximately 300 business jets, 300 small aircraft and 250 helicopters are expected to be added to the current fleet of Indian carriers in the next five years. Investment opportunities worth $3 billion in greenfield airports at Navi Mumbai and Goa. The development of new airports – the Airport Authority of India (AAI) aims to bring around 250 airports under operation across the country by 2020.

For development of aviation in the North-east region – the AAI plans to develop Guwahati as an inter-regional hub and Agartala, Imphal and Dibrugarh as intra-regional hubs. AAI has planned to spend $3 billion on non-metro projects between 2016 and 2020, focusing on the modernisation and up-gradation of airports. Indian airports are emulating the Special Economic Zone (SEZ) Aerotropolis model to enhance revenues, focus on revenues from retail, advertising and vehicle parking, security equipment and services.


India’s aviation industry is to a great extent undiscovered with tremendous development opportunities, considering that air transport is as yet costly for majority of the nation’s population, of which about 40 per cent is the upwardly mobile working class.

The business partners ought to connect with and work together with strategy creators to execute productive and levelheaded choices that would lift India’s civil aviation industry. With the correct arrangements and focus on quality, cost and passenger interest, India would be all around set to accomplish its vision of turning into the third-biggest aviation market by 2020 and the biggest by 2030.

The civil aviation sector in India, which till now was reliant on foreign nations for maintenance, repair and overhaul services, is planning to have indigenous facilities. With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% FDI under automatic route has now been allowed in Brownfield Airport projects.

Further, FDI constrain for Scheduled Air Transport Service/Domestic Scheduled Passenger Airline and local Air Transport Service has been raised from 49% to 100%, with FDI up to 49 per cent allowed under programmed course and FDI past 49% through Government endorsement. For Non-Resident Indians (NRI’s), 100 per cent FDI will keep on being permitted under programmed course.

In any case, outside carriers would keep on being permitted to put resources into capital of Indian organizations working planned and non-booked air transport benefits up to the furthest reaches of 49 per cent of their paid up capital and subject to the set down conditions in the current strategy. Expanding as far as possible for these aviation services should empower rivalry by bringing down costs as well as accord choice to buyers.


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