The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.
India’s air- passenger traffic grew at 16.52 per cent year on year to reach 308.75 million in FY18. It grew at a CAGR of 12.72 per cent during FY06-FY18.
Domestic passenger traffic grew YoY by 18.28 per cent to reach 243 million in FY18 and is expected to become 293.28 million in FY20. International passenger traffic grew YoY by 10.43 per cent to reach 65.48 million in FY18 and traffic is expected to become 76 million in FY20.
In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes. India’s domestic and international aircraft movements grew 14.40 per cent YoY and 9.40 per cent YoY to 1,886.63 thousand and 437.93 thousand during 2018, respectively.
The Government of India has been working towards increasing the number of airports. As of March 2019, India has 103 operational airports. India has planned on increasing the number of operational airports to 190-200 by FY40.
According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in India’s air transport sector reached US$ 1,817.23 million between April 2000 and December 2018. India’s aviation industry is expected to witness Rs 35,000 crore (US$ 4.99 billion) investment in the next four years. The Indian government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026.
- AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2019 for expanding existing terminals and constructing 15 new ones.
- The AAI plans to develop Guwahati as an inter-regional hub and Agartala, Imphal and Dibrugarh as intra-regional hubs.