Snapshot

Indian Aviation, flying high

India is now the 3rd largest- and fastest growing- aviation market in terms of domestic tickets sold.

India has 91 international carriers comprising of 5 Indian carriers and 86 foreign carriers, which ensure that India is well connected with most major countries. Revenue passenger kilometre (RPK) in domestic airline demand growth of 18.6% in 2018 was three times the global RPK growth of 6.5%.

  • Indian carriers are projected to increase their fleet size to 1,100 aircraft by 2027.
  • Freight traffic on Indian airports is expected to cross 11.4 MT by 2032.
  • Government agencies projects requirement of around 250 brownfield and green-field airports by 2020.
  • India is the fastest-growing aviation market and is expected to cater to 520 mn passengers by 2037.
  • India has been projected to be the second-fastest-growing country in the world for passenger traffic by the Airports Council International (ACI) in its traffic forecasts between 2017-40.
  • Demand for aircraft in India is expected to be 1,750 by 2037.

Up to 100% FDI is permitted in Non-scheduled air transport services under the automatic route.

Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic route.

Up to 100% FDI is permitted in MRO for maintenance and repair organizations; flying training institutes; and technical training institutes under the automatic route.

Up to 100% FDI is permitted in Ground Handling Services subject to sectoral regulations & security clearance under the automatic route.

For further details, please refer FDI Policy

  • %

    Passenger traffic growth

  • %

    Foreign Tourist Arrival growth

  • MMT

    Total freight traffic (MMT)

  • %

    Domestic aircraft movement growth

Civil Aviation in India

Ninth largest Civil Aviation market in the world

Aviation Sector

Fastest growing domestic air market in the world

Aviation Sector in India

52 DGCA approved AME Training Institutes

Industry Scenario

The Aviation sector in India currently contributes $72 bn to GDP.

India has 464 airports and airstrips, of which 125 airports are owned by Airport Authority of India (AAI). These 125 AAI airports manage close to 78% of domestic passenger traffic and 22% of international passenger traffic.

Passenger traffic in India stood at 316.51 mn during April 2018 - Feb 2019. Out of which domestic passenger traffic stood at 252.92 mn while international traffic stood at 63.59 mn. The aircraft movement, passenger traffic and freight traffic increased by 4.9%, 4.5% and 3.1% respectively in February 2019 viz-a-viz February 2018, across all Indian airports taken together.

However, the share of international cargo traffic is much higher at 68.5% in comparison with 31.5% of domestic cargo traffic.

Maintenance, Repair & Overhaul (MRO) industry is expected to grow to $1.2 bn by 2020 from $950 mn currently.

Growth Drivers

  • New airport addition

    Aim to increase the number of operational airports to 250 by 2020

  • Infrastructure development

    $ 120 bn investment in airport infrastructure

  • Market advantage

    India’s aviation market to become 3rd largest by 2024

  • The significant increase in M&A activities

    Etihad-Jet, Tata-Singapore Airlines, Tata-Air Asia

  • Regional connectivity

    Boost air connectivity to smaller cities & northeastern states

Major Investors

Data On Map

Aviation Industry in India

Gallery

Sep 07, 2018International Aviation Summit 2018
May 21, 2014India Focus - The aerospace, aviation, space…India Focus - The aerospace, aviation, space and defence industries briefing
Sep 07, 2018International Aviation Summit 2018International Aviation Summit 2018
May 03, 2018Shri Jayant Sinha, Minister of State for Civ…Shri Jayant Sinha, Minister of State for Civil Aviation, GoI speaking at India Economic Summit 2018

Latest News

Image not accessible

90 health counters operational, things back to normal now at Delhi ai…

Image not accessible

Home Ministry gives approval for creation of 1,018 posts in CISF

Image not accessible

MoD clears Rs. 38,000 crore order for 83 LCAs

Image not accessible

Domestic air passenger traffic grew by 8.98 per cent in Feb

Image not accessible

HAL planning to set up bases in four countries to push exports

VIEW ALL

Latest In Aviation

Brochure

India Investment Atlas

View Now

Brochure

India Investment Atlas

Report

Setting up Business in India

Brochure

Civil Aviation Sector

Report

India Surging Ahead - 2019

Report

India Budget 2020: Tax and Sector Highlights

FAQ

Frequently
Asked Questions

What are the clauses under performance guarantee?

Some of the main clauses are as follows:
a) Airline operator must enter into a three year contract with the implementing agency.
b) Submit a performance guarantee fees of 5% of the total VGF amount.
c) Additional guarantee required for non-operational airports.

What are the proposal submission requirements of an airline / helicopter operator under the RCS?

As part of the the proposal submission, an applicant shall be required to submit information under the following categories, as may be specified in detail from time to time:
a) Information about the Applicant
b) Technical Proposal
c) Financial Proposal

What is Regional Connectivity Scheme (RCS)?

Regional Connectivity Scheme aims to make flying affordable for the masses, to promote tourism, increase employment and promote balanced regional growth. It also intends to put life into un-served and under-served airports.

For more information, click here.

 

What are the major objective under National Policy on Civil Aviation 2016?

Major objectives under National Policy on Civil Aviation:
i) Establish an integrated eco-system which will lead to significant growth of civil aviation sector, which in turn would promote tourism, increase employment and lead to a balanced regional growth.
ii) Ensure safety, security and sustainability of aviation sector through the use of technology and effective monitoring.
iii) Enhance regional connectivity through fiscal support and infrastructure development.
iv) Enhance ease of doing business through deregulation, simplified procedures and e-governance.
v) Promote the entire aviation sector chain in a harmonised manner covering cargo, MRO, general aviation, aerospace manufacturing and skill development

What is the procedure to carry out cargo services related transactions electronically with AAI?

Any exporter/importer/Customs House Agents/Airlines etc. who wish to transact electronically with AAI, would be mandatory required to get register with AAI at http://aaiclas-ecom.org Registration is mandatory for Message Exchange activities also.

Registration Process:
User has to fill up the physical registration form along with relevant documents and submit to Airports Authority of India (AAI). AAI would ascertain the correctness of the details submitted. Users are requested to fill valid E-Mail address and Phone Number(s) in Registration form to enable AAI to perform further communications regarding User ID and Password allocation. Users are requested to immediately change the password(s) assigned by AAI.
Non Registered Users are not restricted from functionalities pertaining to Consignment Status, Charges Calculation Estimate Sheet and Cargo Procedures. Same features are available for registered users. In addition, Registered Users enjoy the privilege of accessing functionalities related to Printing of Charge related Documents, Payment transactions and Pre- Deposit account related statements.

For more details please refer the link.

VIEW ALL

Market Research

Open

Effects of Novel Coronavirus (COVID-19) on Civil Aviation: Economic…

Open

Survey on ‘Impact of the Corona Virus on the Indian Economy’

Open

2020 global aerospace and defense industry outlook

Invest India Timeline

2020

DRAG TO VIEW MORE
VIEW ALL
pin
Team India Blogs
Authored By:
Strategic Investment Research Unit (SIRU)
Budget Highlights 2020
VIEW ALL

Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity