India has become the third-largest domestic aviation market in the world and is expected to overtake the UK to become the third-largest air passenger market by 2024. Indian aviation also contributed 5% of the GDP, creating a total of 4 million jobs. In addition to it, there is a US$ 72 billion gross value-added contribution to GDP by this industry.The Indian aviation sector's growth and significance can be attributed to several key factors:
Global Connectivity and Trade,The aviation sector provides essential global connections, facilitating international trade and business. By linking India with other nations and continents, it plays a crucial role in shaping the country's economy.
Tourism Promotion, A robust aviation network promotes tourism by offering efficient transportation. The tourism industry benefits from increased accessibility, contributing to economic growth and employment generation.
Travel allows people to experience different cultures, fostering unity and cohesion among individuals.
Emergency Response and Support, The aviation sector plays a vital role in responding to natural disasters, conflicts, and emergencies.
It facilitates the transportation of supplies, food, and aid during times of crisis. Specially equipped aircraft are deployed for tasks such as firefighting, crop protection, and aerial spraying.
Cargo Transportation,The aviation industry is not limited to passenger travel. It also serves as a critical mode of transportation for various types of cargo worldwide. Efficient air freight services contribute to global trade and supply chain networks.
Historical Significance, India has a rich history in aviation, with notable public undertakings like Air India, Indian Airlines, and Vayudoot handling air transport operations in the past. This heritage provides a strong foundation for the sector's growth.
To support the growth of the aviation sector, the Indian government is focusing on infrastructure development through public-private partnerships. The Ministry of Civil Aviation plans to spend approximately US$ 11.8 billion (INR 98,000 crores) over four years on constructing new airports and expanding existing ones.
The government aims to establish 220 airports by 2025, with contributions from the private sector.
The growth of the aviation sector in India is evident from various statistics and trends:
India has become the third-largest domestic aviation market globally and is projected to surpass the UK to become the third-largest air passenger market by 2024.
The aviation sector contributes 5% to the GDP and generates 4 million jobs in India.
India's airport capacity is expected to handle 1 billion trips annually by 2023.
The number of airports in the country has increased from 74 in 2013-2014 to about 140, and it is expected to reach 220 by 2024-2025.
There has been significant growth in the number of passengers carried by Indian domestic carriers, with over 33% growth in 2021 compared to 2020.
Increasing household income, the entry of low-cost carriers, higher FDI inflows, and growing tourist arrivals are among the key factors driving the sector's growth.
Government policies, such as the UDAN scheme, have been implemented to support and boost the aviation industry.
Overall, the Indian aviation sector's expansion is driven by multiple factors, including economic growth, improved connectivity, supportive government policies, and increased air travel demand from both domestic and international passengers.