India could become top aviation market globally by decade-end: Civil Aviation Secretary Bansal

At the same event on Monday, Civil Aviation Minister Jyotiraditya Scindia said that India’s aviation sector is now at an inflection point between infancy and just having entered the growth phase, and it has immense potential in the years to come. Over the past six years, India’s domestic passenger traffic has grown at a compound annual growth rate (CAGR) of around 14.5 per cent, while international passenger traffic has increased by a CAGR of around 6.5 per cent.

Scindia had said the growth potential is even higher as the sector’s penetration is currently at just 4-5 per cent of India’s population base and demand is rising rapidly.

According to CAPA India projections, the country’s domestic passenger traffic is likely to rise to 16 crores in the 2023-24 fiscal year from an estimated 13.75 crore for the current fiscal. By 2029-30, India’s domestic passenger traffic is likely to touch 35 crore.

Bansal said that with the rising demand for air travel in India, a significant push in aviation infrastructure is also being seen. Passenger handling capacity at airports at the country’s six major metropolitan cities is likely to expand to 320 million per year in the near future and to 500 million per year over the next few years, he said, referring to expansion projects at existing airports in Delhi, Bengaluru, Chennai, and Kolkata, and the upcoming greenfield airports – Noida International Airport in the National Capital Region and the Navi Mumbai International Airport – both of which are likely to be ready by the end of next year. The government wants all six metros – Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata – to emerge as major international hubs for air travel.

Even as India’s aviation sector registers growth on most fronts, Bansal said that he sees three challenges that the industry needs to be mindful of. These include building world-class aviation infrastructure “ahead of the curve” and not behind it, inability of global aircraft and engine manufacturers to keep up with India’s rapidly rising demand for planes and components, and lack of maintenance, repair, and overhaul (MRO) facilities of significant scale within India.

According to Bansal, the “final solution” to the key issue of timely supply of aircraft, engines, and other key components to airlines in India is to have manufacturing facilities within India “either through our own IP (intellectual property) or in collaboration with the global majors”. Currently, there is limited aerospace product manufacturing in India, and the government and the domestic industry have been making a push to significantly grow the segment.