Introduction To The Aviation Industry:
India is the world’s fastest-growing aviation market, with passenger numbers nearly quadrupling in over a decade. The Indian aviation industry and infrastructure have been unable to keep up with this phenomenal growth, resulting in long lines and chaotic scenes at airports. Over the last few decades, the country’s aviation capabilities have grown dramatically, with a period of rapid growth in aircraft sales both domestically and internationally. The country saw many airports coming up between 1990 to 2022, and more are in the pipeline.
Aside from domestic demand in India, the market is being driven by rising Indian consumption of international air travel. International air travel is growing faster than domestic air travel as air connectivity improves across multiple countries.
Analysis Of The Aviation Industry In India
- Current Status:
India has Asia’s largest aviation industry. Civil aviation has grown rapidly in recent decades. Growth reasons are not limited to:
- Aviation infrastructure development
· Rate deregulation and liberalization of air services - Code-share agreements
· Aggressive pricing
· Low-cost airlines (LCCs)
The domestic sector has thrived due to rising per capita income increasing penetration of air traveling facilities to ordinary people, and rapid expansion of destinations, airports, and operational airports.
Air Traffic:
In terms of passenger traffic, India has the world’s third-largest air traffic. In 2020, more than 341.05 million passengers were transported, with an 8% CAGR growth rate. The Coronavirus outbreak had a massive impact on the aviation industry, and the last two years have been a nightmare for the industry. It is fair to say that India is a market with open skies, and the country has also liberalized its airspace for civil aviation use.
Airport Infrastructure:
The Indian civil aviation sector has seen an increase in airport use on domestic and international routes, as well as fewer delays due to bad weather and better planning of ramp-up flights at airports during peak hours. The ICAO forecasts demand for 730 new airports by 2030, catering to the expected 6.5 billion airline passenger growth.
Freight Traffic:
India is the sixth-largest air freight market globally with over 3.33 million metric tons of loading as of 2021. The share of India in the global air freight market has increased from around 2% in 2000 to more than 7% as of 2021, with growth rates in the range of 3–7% per annum during recent years.
India has emerged as a cargo logistics pioneer by constructing substantial port infrastructure, implementing a high-performing national government (financing) program, and collaborating closely with private sector industry groups.
Foreign Direct Investment (FDI):
Airports, aircraft manufacturing, ground handling, aircraft retailing, and leasing are just a few of the industries that welcome FDI. Engineering, aircraft sales, and leasing are examples of economic sectors that encourage foreign direct investment. Foreign direct investment (FDI) is an important source of foreign capital for developing countries. It is important in promoting growth and improving the capacity utilization of productive resources.
It is considered one of the most promising markets for greater FDI because of its large domestic market, shared labor pool with the world’s leading economies, and availability of skilled human resources with high-level education.
Growth Of The Aviation Industry In India
As per numbers, the Indian aircraft industry is growing at 8-10% per annum. In 2020-21 nearly 341.05 million passengers were transported. In terms of value, aviation projects under construction planned a natural growth will account for around 6.5 billion dollars by 2030.
Indian carriers such as SpiceJet, Air Asia, and Jet Airways have led the growth by expanding their routes to Indian destinations. It also includes the nation’s capital, New Delhi, and New York, as well as other Asian cities such as Singapore and Bangkok Suvarnabhumi. India has over 103 domestic airports, 24 international airports, and 10 customs airports. Each of them is rapidly expanding in order to improve its services. Despite market challenges, this is assisting
the aviation industry’s growth. Aside from that, there is an increase in air traffic to international destinations and tourist destinations such as Goa, Andaman and Nicobar Islands, Kerala, and others, resulting in unexpected growth in the country’s tourism industry. This has increased demand for charter flight operation companies, boosting the growth of India’s aviation sector. in order to improve its services. in order to improve its services. Despite market challenges, this is beneficial.
Job Opportunities In The Indian Aviation Sector
According to the study, there are over 4,000 job openings in the aviation sector, including those in aviation industry companies. Staffing, administration, accounting, marketing, sales, quality assurance, engineering, maintenance, repair service, and education will account for the majority of aviation industry jobs.
The aviation industry employs over 50 different job categories. Air India Ltd., Jet Airways Ltd., SpiceJet Ltd., Air Asia Ltd., and other aviation companies such as CAE Inc.. are among those offering aviation industry jobs. The Aviation Sector Skill Council (ASSC) was formed to develop policies for training people for aircraft industry jobs.
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Conclusion:
The Indian aviation market is rapidly expanding and actively growing. We must acknowledge that the environment has significantly improved in recent years as a result of increased competition and investment. Furthermore, the entry of some critical companies into the market has resulted in significant price increases. With such advancements, the Indian aviation market is well on its way to becoming a significant contributor to the Indian economy. Domestic airlines and airports serving all major international routes from India, as well as air cargo corridor services, are all improving significantly.
