Aviation Industry in India - Analysis of Growth, Trends and Forecast (2021 - 2026)

Indian civil aviation is the 9th largest Aviation market in the world and is expected to become 3rd largest by 2020 and largest by 2030. Total passengers traveled stood at 163 million in 2013 and 174.2 million in 2014. India is witnessing double-digit growth in the number of domestic passengers and more than 5% growth in international passengers in 2015.

The recession in 2008 has impacted Indian airlines the most, and almost all of them grew towards losses. In 2006-2007, Jet Airways bought Sahara Airways, and almost all the companies at that time were in huge profit. Change in regulation by the Directorate of Civil Aviation (DGCA) and banning Airbus in India for a year have impacted aviation the most. Because of these decisions, all the airlines get into losses. Air India is merged with Indian Airlines during the same period, which led air India to a loss of INR 44,000 crore. Indian government helped Air India in recovering from losses by giving them a bailout package of more than 10,000 Crore twice between 2011 and 2014.

After a long struggle, Kingfisher Airlines (the biggest airline in India) filed for bankruptcy in 2012. The airline was not able to pay its taxes and loan for many months. They have also defaulted on the salaries of their employees.

Recently on November 11, 2015, on the eve of the holy festival of Diwali, the government of India announced ease in FDI norms and increased the limit of 15 sectors, including civil aviation. Already 100% FDI is permitted in Greenfield airport projects, helicopter services and seaplanes, maintenance and repair organizations, flying training institutes, and technical training institutes.

NRI’s can get the benefit of 100% FDI in domestic scheduled passenger airlines and in Non-Scheduled Air Transport Service. However, up to 49%, FDI is permitted for the rest of the world and can be extended up to 74% under the government approval route.

India has 28 international airports and planned to convert 11 domestic airports to international by 2018. In collaboration with DGCA and AAI, the government is looking to develop 50 new small-sized airports in tier 2 cities of the country. Some of them are functional from Jan 2015.

The decline in international fuel prices and the increase in middle-class population is affecting positively toward the civil aviation industry of India. Aviation Industry is expected to increase with a CAGR of xx.xx% till 2020.

What the report offers

The study elucidates the situation of India and predicts the growth of its aviation industry. The report talks about growth, market trends, progress, challenges, opportunities, government regulations, technologies in use, growth forecast, major companies, upcoming companies, projects, etc., in the Aviation Sector of India. In addition to it, the report also talks about the economic conditions of and future forecast of its current economic scenario and effect of its current policy changes on its economy, reasons, and implications on the growth of this sector. Lastly, the report is segmented by various types of Minerals and Metals available in the country.