INDIAN AVIATION INDUSTRY AT A GLANCE IN 2022- 2023 The Civil Aviation Industry in India is one of the fastest growing Industry in India. This industry can be classified as the Scheduled Air transport services which consists of both domestic and international Air travel. The non-scheduled service consists of Air Cargo, Air taxi operators and Charter operators.
India will become the third-largest aviation market in terms of passengers by 2024 and would be overtaking the UK. Investment to the tune of Rs. 420-450 billion (US$ 5.99-6.41 billion) is expected in India’s airport infrastructure during the current five-year period. Indigo airlines is the largest airline company in India.
Between FY16 and FY23, air freight traffic increased at a CAGR of 2.20% from 2.70 MMT to 3.15 MMT. Freight traffic stood at 3.15 million metric tonnes in FY23. Freight traffic in airports in India has the potential to reach 17 MT by FY40. In FY22, the number of aircraft movements stood at 1,757,112, and aircraft movements reached 2.5 million in FY23. To cater to the rising air traffic, the Government of India has been working towards increasing the number of airports. As of 2023, India has 148 operational airports. India has planned on increasing the number of operational airports to 220 by 2025.
Industry ForecastIndia is expected to overtake China and the United States as the world's third-largest air passenger market, by 2030, according to the International Air Transport Association (IATA). The number of airplanes in the Indian Aviation industry is expected to reach 1,100 planes by 2027. In FY23, airports in India pegged the domestic passenger traffic to reach 270.34 million, a 62.1% YoY increase, and international passenger traffic to reach 56.9 million, a 157% YoY increase, as compared to FY22. The expenditure of Indian travellers is expected to grow up to Rs. 9.5 lakh crore (US$ 136 billion) by 2021. Due to the rise in demand for air travel, India will need 2,380 new commercial airplanes by 2038.
Investments in Aviation IndustryAccording to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in India’s air transport sector reached US$ 3.73 billion in the current financial year.
In the Union Budget 2023-24, Rs. 3,224.67 crore (US$ 440.36 million) has been allocated to the Ministry of Civil Aviation for development and expansion of its projects.
