India’s aviation market is expected to be world’s third largest by 2024. India is currently considered the third largest domestic civil aviation market in the world. And is expected to overtake UK to become the third largest air passenger market by 2024
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.
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 now, there are 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.
According to data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in India’s air transport sector reached US$ 1,904.37 million in 2019. The government has 100 per cent FDI under automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49 per cent would require government approval.
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.