Indian Aviation Sector : AN OVERVIEW
India is the ninth largest aviation market in the world with a size of around US$ 16 billion and is ready to be the 3rd biggest by 2020. India aviation industry promises huge development potential because of vast and growing middle class population, rapid economic growth, higher expendable incomes, rising aspirations of the middle class and general low penetration levels.
Civil aviation industry in India is experiencing a new era of expansion driven by elements for example low cost carriers, modern airports, foreign direct investments in domestic airlines, cutting edge information technology interventions and growing emphasis on regional connectivity. Civil aviation sector has been becoming consistently enrolling a development of 13.8% amid the most recent 10 years. The air transport in India has attracted FDI of over US$ 569 million from April 2000 to February 2015.
The Indian airports have a combined capacity to cater to 220.04 million passengers and 4.63 million tonnes cargo per annum and handled 168.92 million passengers and 2.28 million tonnes cargo in 2013-14. According to estimates, passenger traffic at Indian Airports is expected to increase to 450 million by 2020 from 159.3 million in 2012-2013.
Looking at future air transportation prerequisites and desire to become a global player in creating/commercializing aerospace innovations, India is rapidly building capabilities to emerge as a preferred destination for manufacturing of aerospace components.
Throughout the following decades, India undoubtedly has the potential to become a significant part of the global aerospace supply chain as India offers cost advantages of between 15 to 25 per cent in manufacturing, together with its large procurement appetite. Robust technical and engineering capabilities backed by top-notch scientific and technical institutes are other positive offerings on the table.
- An investment of over US$ 12 billion required amid the Twelfth Five Year Plan
- Airlines are relied upon to work around 1000 aircraft’s by 2020, up from the present 450
- Investment to the tune of US $4 billion required for General Aviation aircrafts by 2017
- Air Navigation Services involves speculation worth US$ 7 billion in Twelfth Five Year Plan
- FDI up to 49% permitted in local airlines by the outside bearers
- Outside value up to 100% permitted in airport development
- Domestic and international passenger traffic anticipated that would develop at yearly normal rate of 12% and 8% in next five years
- Yearly normal rate of development of domestic and international cargo estimated to be 12% and 10% during next five years
- MRO industry to triple in size from INR 2250 crore in 2010 to INR 7000 crore by 2020
- Around 3,50,000 new employees are essential to encourage growth in the next decadeRelated Resource:
Civil Aviation Sector in India