The Promising Outlook for the Indian Aviation Industry
Posted on : 10 May, 2023 7:44 pm
Introduction
The Indian aviation industry, thriving in the world’s fastest-growing economy, is poised to reap the benefits of India’s robust trade and commerce sectors. With significant growth anticipated in civil aviation, military aviation, business aviation, regional and international aviation, helicopter aviation, and even the space industry, the Indian government recognizes the value of these segments and has set a clear roadmap for the country’s airline companies. By charting this course, India aims to become the leading aviation hub worldwide by 2040. In this article, we explore the future of the Indian aviation industry, its vision for 2040, and the infrastructure developments that will shape its progress.
Vision 2040: Roadmap for Indian Aviation
Drawing on existing data from Indian airports and aviation organizations, projections indicate that by 2040, over 1.1 billion passengers will travel by air, representing more than four times the current number. To meet the rising demand, the construction of approximately 200 airports will be necessary, along with the development of more than 150,000 acres of land. The realization of this vision will require an investment exceeding Rs. 3,375 crore, allocated to various civil aviation schemes such as the Nabh Nirman Scheme, DG Yatra, and Air Sewa. The Regional Connectivity Scheme and UDAN (Ude Desh ka Aam Naagrik) initiatives will further enhance connectivity to underserved airports.
The Vision 2040 places significant emphasis on the improvement of the Indian Maintenance, Repair, and Overhaul (MRO) industry. It is estimated that by 2040, the Indian MRO infrastructure will reach $540 million USD, with a projected growth rate of nearly 11% Compound Annual Growth Rate (CAGR), surpassing all other sub-sectors within the aviation industry.
Technological advancements, including automated baggage drop-in machines and the Digi Yatra Biometric Boarding System (DYBBS), are being actively promoted through the Vision 2040. The DYBBS will utilize facial recognition systems for passenger verification. Airports across the country will witness the implementation of next-generation technologies, such as Air Vistara’s ‘RADA,’ which scans boarding passes to provide information about terminals, departure gates, destination weather conditions, and real-time flight updates. Notably, eco-friendly practices, like those employed by Cochin’s Green Airport, utilizing solar panels to meet 100% of their energy requirements, are being recognized and rewarded.
Airport Infrastructure Development in Indian Aviation
The International Air Transport Association (IATA) has predicted that by 2024, India will become the world’s third-largest market for aviation. The International Civil Aviation Organization (ICAO) estimates that the output of the Indian aviation industry will grow by 3.25 times during this period. To support this positive growth, a significant increase in employment opportunities is expected, with ICAO predicting a 6.1-fold rise in employment within the Indian aviation sector.
The Indian Brand Equity Foundation (IBEF) estimates that the growth of the civil aviation sector will lead to an expansion in the number of airports and active aircraft within Indian airspace. By 2027, the current fleet of over 680 aircraft is projected to double to approximately 1,100 aircraft. Moreover, the number of aircraft in the Indian aviation sector is expected to reach around 2,400 by 2040.
Recognizing the need for substantial capital investments in airport infrastructure projects, the National Civil Aviation Policy (NCAP) 2016 focuses on the growth of 28 aspects of the Indian aviation industry. The Airport Authority of India (AAI), responsible for managing 137 airports across India, has collaborated with the Ministry of Civil Aviation) to include airport infrastructure projects in the National Monetization Policy (NMP).
Under the NMP, 25 brownfield airports have been identified for asset monetization. AAI plans to invest Rs. 25,000 crore over the next five years to fund and improve airport infrastructure projects. Additionally, 21 greenfield airports will be developed at a cost of Rs. 36,000 crore, with five of them already in operation. Furthermore, six heliports are set to be commissioned in Himachal Pradesh and Uttarakhand.
Airport infrastructure development projects will also benefit the Northeast region of India. Hollongi Airport, near Itanagar, Arunachal Pradesh, is currently under construction and is expected to be inaugurated by August 15, 2022. Moreover, plans are underway to establish three more airports in Arunachal Pradesh. In Assam, the Rupsi Airport has become fully operational, marking the seventh airport in the state.
The development of water aerodromes is another notable aspect of Indian aviation infrastructure. Twelve new locations within the country, including two in Assam, four in Andaman and Nicobar Islands, and one at Ujjain Dam, Maharashtra, will have water aerodrome services established.
The Bright Future of Indian Aviation
The Indian aviation industry significantly contributes to the country’s GDP, with over $72 billion USD, accounting for nearly 5% of the total GDP. It also plays a pivotal role in generating employment opportunities, directly employing 4 million people and indirectly supporting more than 7 million jobs. With a concerted effort from the government, private entities, and organizations, various segments of the Indian aviation industry are being planned and developed, ensuring a bright future.
Conclusion
The future of the Indian aviation industry is undeniably promising, driven by the country’s rapid economic growth. With a comprehensive roadmap set for 2040, the industry is poised to experience remarkable expansion across its various segments. The vision for the Indian aviation industry includes increased passenger numbers, significant infrastructure development, emphasis on the MRO sector, and the adoption of advanced technologies. As India moves towards becoming a global aviation hub, the industry’s growth will not only boost the economy but also create ample employment opportunities. By capitalizing on this favorable trajectory, India is set to secure its position as a key player in the global aviation landscape.