The Future of Indian Aviation Industry
- 24-Jun, 2022
- Category :Aviation Industry
As the fastest growing economy in the world, all sectors of Indian trade and commerce are booming. Indian Aviation is bound to benefit from this growth, across all of its segments. Civil aviation, Military aviation, Business aviation, Regional and International aviation, Helicopter aviation, and even the Space industry will reflect the growth. The Indian government understands the importance and value of these segments, and has laid out a roadmap for Indian airline companies to follow. Along with growing the Indian aviation sector, the roadmap laid out important milestones to realize the aspiration of making India the best-performing hub for aviation by 2040.
Following is a brief account of the future of the Indian Aviation Industry.
Extrapolating the existing data from Indian airports and aviation organizations, by 2040, more than 110 crore passengers will be travelling by air. It means that in 20 years, more than 4x times the number of existing passengers will travel by the air route. To meet the demands of the rising customer base, almost 200 airports would need to be constructed. More than 1,50,000 acres of land would need to be developed for the Indian airports. A cost of more than Rs. 3,375 crore would be required for various schemes of the civil aviation. Nabh Nirman Scheme, DG Yatra, Air Sewa, and many other schemes would be a part of the Vision 2040. The Regional Connectivity Scheme, and the UDAN (Ude Desh ka Aam Naagrik) schemes are enhancing connectivity to unserved and under-served airports.
The Vision 2040 puts a lot of emphasis on the improvement of Indian MRO industry. It is estimated that the Indian MRO infrastructure would amount to $540 million USD by 2040. MRO is projected to grow at almost 11% CAGR, which is the highest among all sub-sectors of the aviation industry.
Upcoming technologies like automated baggage drop-in machines, Digi Yatra Biometric Boarding System (DYBBS), are being promoted through the Vision 2040. The DYBBS will be used for passenger verification using facial recognition systems. Airports across the country would observe implementation of next-gen technologies like Air Vistara’s ‘RADA’. RADA will scan boarding passes to display information about terminals, departure gates, destination weather conditions, and real-time updates of flight status, etc. Green Airports are like Cochin are being awarded for their green practices, and for meeting 100% of their energy requirements with eco-friendly technologies like solar panels.
IATA (International Air Transport Association) has predicted that India will be the world’s third largest market for aviation, by the year 2024. ICAO (International Civil Aviation Organization) estimates that the output of Indian aviation industries will be increased by 3.25x times. To meet the demands of the positive growth in the aviation industry, large-scale employment will be required. ICAO predicts that the employment opportunities within the Indian aviation sector will grow by 6.1x times the existing numbers.
IBEF (Indian Brand Equity Foundation) estimates that the growth of civil aviation sector will increase the number of airports, and the number of active aircrafts within the Indian airspace. By 2027, we would double the existing 680+ aircrafts to approximately 1100 aircrafts. The number of aircrafts in the Indian aviation sector will grow to around 2400 aircrafts by the year 2040.
The National Civil Aviation Policy (NCAP) 2016 focuses on the growth of 28 aspects of the Indian aviation industry. AAI (Airport Authority of India) that controls 137 airports across India, understands that large capital investments are required for airport infrastructure projects. So, the MoCA (Ministry of Civil Aviation) and AAI have included airport infrastructure projects in the National Monetization Policy (NMP).
25 brownfield airports have been tagged for asset monetization through NMP. AAI hopes to invest Rs. 25000 crore over the upcoming 5 years, to fund and improve airport infrastructure projects. 21 greenfield airports will be developed at the cost of Rs. 36000 crore. 5 out of 21 greenfield airports have even entered the operational stage. 6 heliports will be commissioned in Himachal Pradesh and Uttarakhand.
North East will be receiving its fair share of airport infrastructure development projects. Hollongi Airport, near Itanagar, Arunachal Pradesh, is currently under construction. It will be inaugurated by August 15, 2022, and its runway will be extended later by another 500m. Three more airports will be established in Arunachal Pradesh. The 7th airport in Assam, Rupsi Airport, is now fully operational.
Water aerodromes services will be established across 12 more locations within the country. Two of them will be in Assam, 4 will be initiated in Andaman and Nicobar Islands, and one will be started at Ujjain Dam, Maharashtra.
More than $72 Billion USD is contributed to the GDP by the Indian aviation industries. This amounts to almost 5% of the GDP, which is responsible for 40,00,000 jobs directly and more than 70,00,000 jobs indirectly. Government, private entities, and organizations have come together to plan and develop various segments of Indian aviation.
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