AVIATION IN INDIA

India is one of the fastest growing aviation markets in the world. With the
liberalization
of the Indian aviation sector, the industry had witnessed a transformation with the
entry of the privately owned full service airlines (FSA) and low cost carriers (LCA).
The sector also witnessed a significant increase in number of domestic air travel
passengers. Some of the factors that have resulted in higher demand for air
transport in India include the growing middle class and its purchasing power, low
airfares offered by LCA’s, the growth of the tourism industry in India, increasing
outbound travel from India and the overall economic growth of India.

After the Indian aviation sector underwent liberalization in late nineties, it has
seen a flurry of private service airlines entering the industry. The aviation sector in
India holds immense potential for growth; more so because it receives great
impetus from the booming tourism industry driven by higher disposable incomes
and favorable demographics. The robust policy regime created by the Indian
Government acts as the blood line of this industry. While the last few years have
witnessed significant investments by large and small domestic companies,
indigenous aerospace and defense industry has been evolving in a big way. The
Indian aviation sector continues to hold immense potential for growth.

MARKET SIZE
India’s passenger* traffic stood at 293.99 million in FY20 (till January 2020) where
domestic passenger traffic reached 235.44 million and International passenger
reached 58.55 million.
In FY20 (till January 2020) domestic freight traffic stood at 1.14 million tonnes,
while international freight traffic was at 1.70 million tonnes.
India’s domestic and international aircraft movements reached 1.82 million and
0.37 million in FY20 (till January 2020), respectively.
To cater to the rising air traffic, the Government of India has been working
towards increasing the number of airports. As of March 2019, India has 103
operational airports. India has envisaged increasing the number of operational
airports to 190-200 by FY40.
Further, the rising demand in the sector has pushed the number of airplanes
operating in the sector. As of July 2018, there were nearly 620 aircraft being
operated by scheduled airline operators in India. The number of airplanes is
expected to grow to 1,100 planes by 2027.