The civil aviation
industry in India has emerged as one of the fastest growing industries in the
country during the last three years. India’s aviation industry is largely
untapped with huge growth opportunities. India is expected to become the
world’s third largest aviation market by 2024 and is expected to overtake UK to
become the third largest air passenger* market by 2024.
India’s aviation industry
is expected to witness Rs. 35,000 crore (US$ 4.99 billion) investment in the
next four years. The Indian Government is planning to invest US$ 1.83 billion
for development of airport infrastructure along with aviation navigation
services by 2026.
India’s passenger* traffic
stood at 115.37 million in FY21. In March 2021, the average daily
passenger traffic stood at 546,702.90.
Government of India has
been working towards increasing the number of airports. Currently, India had
153 operational airports. India has envisaged increasing the number of operational
airports to 190-200 by FY40.
the rising demand in the
sector has pushed the number of airplanes operating in the sector. The number
of airplanes is expected to reach 1,100 planes by 2027.
Due to rise in demand in
air travel, India will need 2,380 new commercial airplanes by 2038. India is
expected to have the largest number of aircrafts flying by its scheduled
airlines latest by December 2019. India plans to open 100 additional airports
To cater to the rising air
traffic, the Government of India has been working towards increasing the number
of airports. As of 2020, India had 153 operational airports. India has
envisaged increasing the number of operational airports to 190-200 by FY40.
The AAI has announced a
few developments in Indian Airports—construction of a new airport on a
greenfield site in Hollongi (Arunachal Pradesh) by November 2022, new
integrated passenger terminal building expansion of Tiruchirappalli & Pune
Airport (March 2022), Guwahati International Airport (June 2022), Maharaja Bir
Bikram Airport (Early 2021) and major expansion of Surat Airport (December
2021). On May 08, 2021, AAI commenced commercial operations at Rupsi
airport—Northeast India’s 15th airport and Assam’s 7th airport.
The Government of India
launched regional connectivity scheme named UDAN (Ude Desh ka Aam Nagrik) to
make flying affordable for common man. In February 2021, the government
identified 24 routes in Assam under the first phase of UDAN 4.0. In March 2021,
on the launch of the ‘Azadi Ka Amrit Mahotsav (India@75)’ by the Government of
India, the Ministry of Civil Aviation (MoCA) has proposed 392 routes under the
UDAN 4.1 bidding process.
AAI plans to invest Rs.
25,000 crore (US$ 3.58 billion) in next the five years to augment facilities
and infrastructure at airports. It has opened the airport sector to private
participation as six airports across major cities are being developed under the
PPP (public private partnership) model. Investment to the tune of Rs.
42,000-45,000 crore (US$ 6-6.5 billion) is expected in India’s airport
infrastructure between FY18-23. Under Union Budget 2021-22, the Indian
government expanded the scope for ‘Krishi Udaan’ in convergence with Operation
Green Scheme, wherein air freight subsidy of 50% for agri-perishables would be
provided to North East states and 4 Himalayan states/UTs. The expansion of
product-coverage will boost the ‘Krishi Udaan’ scheme and improve air cargo
transportation from these states.
Earlier in 2021, the
government announced plan to set up two water aerodroames in Assam and four
water aerodromes in Andaman & Nicobar Islands this year to boost tourism
and connectivity. In March 2021, the government submitted a proposal to develop
a water aerodrome project at the Ujjani Dam, under the Ministry of Civil
Aviation’s UDAN-RCS (regional connectivity scheme). The government is planning
to start 14 more water aerodromes across the country, after the successful
launch of seaplane service by Prime Minister, Mr. Narendra Modi, between the
Statue of Unity near Kevadiya in Gujarat's Narmada district and Sabarmati
Riverfront in Ahmedabad in October 2020. Also, the Airports Authority of India
(AAI) issued tenders for construction of the first phase of an international
airport at Dholera in Gujarat, entailing an investment of Rs. 987 crore (US$
135.07 million). The new facility is being set up in greenfield city under the
Delhi–Mumbai Industrial Corridor (DMIC) project at Dholera.