Jyotiraditya Scindia predicts India’s air passenger count to exceed 140 million by 2024

Jyotiraditya M Scindia, Union Minister of Civil Aviation and Steel, spoke about the growth of the Indian aviation industry during his speech at the CAPA India’s Aviation Summit 2023 on Monday. He mentioned that India has come a long way from having empty airports to now handling over 4.56 lakh domestic passengers in a single day.

“India will have more than 140 million passengers in FY 2024 alone, he added.”

During the CAPA India’s Aviation Summit 2023, Jyotiraditya M Scindia, Union Minister of Civil Aviation and Steel, noted that India’s domestic passenger count had more than doubled from 120 million to approximately 275 million between FY 2014 and FY 2020 at a CAGR of 14.5%, with potential to reach a CAGR of 18-20% without the COVID-19 pandemic. He also mentioned that while India is the third largest domestic market globally in terms of seat capacity, it ranks only 18th for international seat capacity.

Jyotiraditya M Scindia, Union Minister of Civil Aviation and Steel, highlighted the potential for continued growth in India’s aviation market during the CAPA India’s Aviation Summit 2023. He pointed out that the country’s real GDP is projected to reach approximately 252 trillion rupees by FY 2030, with GDP per capita transitioning from a lower middle-income to an upper middle-income status. Additionally, urbanization rates are expected to increase, along with the disposable income of middle and high-income households. With one of the largest young populations in the world, India’s propensity for air travel is expected to grow.

Jyotiraditya M Scindia, Union Minister of Civil Aviation and Steel, emphasized the importance of self-reliance and growth in India’s aerospace manufacturing and maintenance, repair, and overhaul (MRO) industries during his speech at the CAPA India’s Aviation Summit 2023. He highlighted the launch of private manufacturing for the C-295 transport aircraft by the Airbus-Tata joint venture as a significant step towards achieving this goal. With a projected order of 1500 to 1700 aircraft by Indian carriers, he urged for India to become a base for aerospace manufacturing. The government has taken steps to develop an ecosystem for MROs, including reducing GST rates and allowing 100% FDI into the sector. MROs have seen significant growth since the GST reduction, but the sector still has untapped potential. The Minister encouraged the MRO industry to expand globally and strive for a larger market share.

Jyotiraditya M Scindia also highlighted the potential for growth in the drone industry during his speech at the CAPA India’s Aviation Summit 2023. He stated that the drone market is projected to grow from Rs 2900 crore in 2020 to approximately Rs 77,300 Crore in 2025 at a CAGR of 80%. By 2030, it is estimated to reach Rs 2,95,000 Crore. The industry also has the potential to generate employment for close to 3 lakh people in manufacturing and drone flying. With such impressive figures, the Minister emphasized the importance of supporting the growth of the drone industry in India.

The Indian government has taken several steps to promote the growth of the drone industry and fully realize its potential for the country’s economy. This includes the implementation of New Drone Rules in 2021, which have eliminated various licenses, fees, and forms. Additionally, a Drone Airspace Map was published in September 2021, designating 90% of India as a green zone where no permission is required for drone operations. The government has also introduced a PLI (Production Linked Incentive) scheme to encourage drone manufacturing. These efforts have resulted in increased adoption of drones across various sectors and a surge in drone manufacturing in the country.