What is the contribution of the aviation industry in the Indian Economy?
Posted on : 23 July, 2021 12:38 pm
The aviation sector in India currently contributes $72 billion to GDP. It is necessary to rise in demand in the development of the ecosystem and the government policies. Furthermore, through the National Civil Aviation Policy 2016 (NCAP), Indian government takes initiative for flying to the masses. It does it by enhancing its affordability and affordability. Additionally, they also promote business, deregulation, simplified procedures, and e-governance.
In the fiscal year 2021, India’s air traffic stood at approx 115.37 million. Due to the covid-19 pandemic, domestic and international air passenger traffic fell at a compound annual gross rate (CAGR) of -9.02% in the fiscal year of 2016 and -28.64% in the fiscal year of 2021.
In the fiscal year 2021,“ airports in India pegged the domestic passenger traffic to be 105.2 million, a 61.7% decline, and international passenger traffic to be 10.1 million, an 84.8% decline, over the fiscal year ended March 31, 2020. In March 2021, the average daily passenger traffic stood at 546702.90.”
Aircraft movement declined at a CAGR of -7.79% from 1.60 million in FY16 to 1.20 million in FY21. From FY16 to FY21, domestic aircraft movement decreased at a CAGR of -6.44% and international aircraft movement declined at a CAGR of -18.52%. India’s domestic and international aircraft movements reached 1,062 thousand and 135 thousand, respectively, in FY21. The expenditure of Indian travelers is expected to grow to Rs. 9.5 lakh crore (US$ 136 billion) by 2021.