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INDIA'S COMMERCIAL AVIATION DYNAMICS & ROAD AHEAD
SP’s Aviation
|Issue 10, 2023
India's Commercial Aviation Sector is firmly on the fast track for a record-breaking growth despite facing some robust challenges

THE CIVIL AVIATION INDUSTRY IN INDIA HAS EMERGED AS ONE of the fastest-growing industries in the country. According to the India Brand Equity Foundation (IBEF), the Indian aviation industry has recovered fully from the COVID-19 pandemic shock as indicated by the air traffic movement which stood at 327.28 million in FY23 compared to 188.89 million in FY22.
India is expected to come behind China and the United States as the world's third-largest air passenger market in the next ten years, by 2030, according to the International Air Transport Association (IATA).
Both government and private sectors are investing significantly in infrastructure development to facilitate this growth.
Key drivers of this growth include rising household incomes, the emergence of low-cost carriers, increased FDI inflows, and a growing GDP. The market size of the industry right now is at an impressive scale, the passenger growth has witnessed a significant increase, and a large number of plane orders have emerged alongside the merger of AirAsia India and Air Vistara into Air India and a new number of regional airlines coming into the picture are some of the positive sides of Indian aviation industry’s landscape.
• Air India had this February ordered 470 aircraft from Boeing and Airbus with 400 single aisles and 70 wide bodies including A350s, Boeing 787s and B777X. This order has options and purchase rights for 370 additional aircraft to be procured from Airbus and Boeing over the next decade.
•
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