Introduction

The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. India is expected to become the world’s largest domestic civil aviation market in the next 10 to 15 years. India is also expected to displace the UK to become the third largest air passenger* market by 2025.

Domestic passenger traffic grew YoY by 18.28 per cent to reach 243 million in FY18 and is expected to become 293.28 million in FY20E. International passenger grew YoY by 10.43 per cent to reach 65.48 million in FY18 and traffic is expected to become 76 million in FY20E.

In FY18, domestic freight traffic stood at 1,213.06 million tonnes, while international freight traffic was at 2,143.97 million tonnes.

AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in current year for expanding existing terminals and constructing 15 new ones. It has opened airport sector to private participation, six airports across major cities are being developed under the PPP model. The Airports Authority of India (AAI) aims to bring around 250 airports under operation across the country by 2020.

According to various estimates, India will require investments worth Rs 3 – 4 lacs crore (US$ 46.55 – 62.06 million) to achieve a capacity for having a billion trips per year.

Current Developments

The Indian government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026.
The Government of Andhra Pradesh is to develop Greenfield airports in six cities-Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model.

In September 2018, Jharsuguda Airport in Odisha and Pakyong Airport in Sikkim were inaugurated. Pakyong airport is Sikkim’s first ever airport and AAI’s first greenfield airport constructed.

Future Plans

The AAI aims to bring around 250 airports under operation across the country by 2020. The AAI has developed and upgraded over 23 metro airports in the last five years.

The AAI plans to develop Guwahati as an inter-regional hub and Agartala, Imphal and Dibrugarh as intra-regional hubs.

Indian aircraft Manufacture, Repair and Overhaul (MRO) service providers are exempted completely from customs and countervailing duties.

The Government of Andhra Pradesh is to develop Greenfield airports in six cities-Nizamabad, Nellore, Kurnool, Ramagundam, Tadepalligudem and Kothagudem under the PPP model.

India plans to be a global aviation hub and one of the top three aviation markets worldwide by 2030. The aviation sector is likely to see investments totalling USD 12.1 billion during 12th Five Year Plan, out of which USD 9.3 billion is expected to come from the private sector.

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Security Equipment | Logistic Equipment | Aircraft Maintenance Systems | Air Field Equipment | Aircraft Systems & Spares etc. and allied Services.

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